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WGU VPC2Data-Driven Decision MakingC207 Sample Questions:

1. A researcher wants to estimate the average wholesale price of a gallon of gas in the United States. Several gas station owners along the East Coast are asked what price they pay wholesale for a gallon of gas. The researcher then averages these values for the sample mean price of a gallon of gas. Which problem would be discovered if this researcher's work were evaluated?

A) The sample data are not representative of the population.
B) There is conscious bias in the data.
C) There is response bias in the data.
D) There is faulty calibration in the data collection.

2. An analyst used multiple linear regression to show how a big box store's sales (y) are predicted by the big box store's advertising expenditure in dollars (variable x1) and the advertising expenditure in dollars of a specialty store (variable x2) in the same market. The estimated regression is y = 651.57 + 92.30x1 # 26.89x2. How are advertising expenditures and sales related in this scenario?

A) If the big box store decreases its advertising expenditures, it will decrease the big box store's sales.
B) If the specialty store increases its advertising expenditures, it will decrease the big box store's sales.
C) If the big box store increases its advertising expenditures, its sales will decrease.
D) If the big box store decreases its advertising expenditures, its sales will increase.

3. An entrepreneur wants to start a boutique cupcake business based on family recipes shared for three generations. The entrepreneur knows the required costs associated with rent, supplies, utilities, and hourly wages and wants to determine how many cupcakes they need to sell to generate a profit.
Which technique should be used to analyze this data?

A) Break-even analysis
B) Regression
C) Crossover analysis
D) T-test

4. What is a basic assumption of a z-score?

A) The mean is equal to zero with a standard deviation of 1.
B) Outlier data points must be eliminated from a z-score calculation.
C) Outlier data points are critical to a z-score calculation.
D) The mean is equal to zero with a standard deviation of 2.

5. What is the formula for calculating a simple index number?

A) The current price divided by the base year's price times 100
B) The base year's price divided by the current price
C) The current price divided by the base year's price
D) The base year's price divided by the current price times 100

Solutions: