Data-Driven-Decision-Making Exam Dumps - WGU Courses and Certificates Questions and Answers

This scenario requires the use of **conditional probability**, which applies when the likelihood of one event depends on the occurrence of another event. In data-driven decision making, conditional probability is used to model dependent events within processes, workflows, and project timelines.

In this case, the enterprise analytics team’s ability to move into production is **dependent on** the infrastructure team completing the migration. Because one event cannot occur unless another event has already occurred, the probability of completing the project on time must account for this dependency.

The multiplication principle applies to independent events, Bayes’ theorem updates probabilities based on new information, and combinations are used for counting outcomes, not dependency analysis. Conditional probability explicitly captures the relationship between dependent tasks.

Project risk analysis and scheduling often rely on conditional probability to assess completion likelihood when tasks are sequentially linked. Therefore, the correct answer is **C**, conditional probability.

Break-even analysisis the appropriate technique for determining the number of units that must be sold to cover all fixed and variable costs. In data-driven decision making, break-even analysis is widely used for pricing, production, and startup feasibility decisions.

In this scenario, the entrepreneur already knows fixed costs such as rent and utilities, as well as variable costs like supplies and hourly wages. Break-even analysis calculates the point at which total revenue equals total cost, meaning profit is zero. Any sales beyond this point result in profit.

Crossover analysis is not a standard financial technique, t-tests are used to compare means, and regression analysis is used to predict outcomes based on relationships between variables rather than identify cost–revenue thresholds.

By applying break-even analysis, the entrepreneur can determine the minimum number of cupcakes required to sustain the business and make informed operational decisions. Therefore, the correct answer isB.

A key disadvantage of using abalanced scorecardis that itrequires significant time and effort to develop a meaningful and effective template. In data-driven decision making, the value of a balanced scorecard depends on careful selection of performance measures that align with organizational strategy.

Developing a balanced scorecard involves defining strategic objectives, selecting appropriate metrics, setting targets, and ensuring data availability. This process can be resource-intensive, especially in large or complex organizations. However, once implemented, the balanced scorecard offers substantial long-term benefits.

The other options are incorrect because the balanced scorecard explicitly includes both financial and nonfinancial measures and is designed to link operations with strategy. While implementation may involve some cost, expense alone is not typically cited as its primary disadvantage.

Therefore, the correct answer isA.

Themedianis the middle value of a dataset when the data is arranged in ascending order. It is a key descriptive statistic used in data-driven decision making because it is resistant to extreme values.

First, sort the data in ascending order:

22, 24, 25, 28, 32,34, 41, 42, 48, 48, 54

There are 11 values in total, so the median is the 6th value. The 6th value is$34, making it the median.

The median provides insight into the typical transaction size without being influenced by unusually large receipts. Therefore, the correct answer isB.

Aboxplotis specifically designed to display the distribution of a dataset using quartiles. In data-driven decision making, boxplots visually summarize data through the minimum, first quartile, median, third quartile, and maximum.

Boxplots are useful for identifying spread, central tendency, skewness, and potential outliers. Scatterplots and bivariate charts analyze relationships between variables, while Pareto charts rank categorical data by frequency.

Because quartiles are the defining feature of a boxplot, the correct answer isC.

Akey performance indicator (KPI)measures performance in asingle critical area, such as revenue growth or customer satisfaction. In contrast, abalanced scorecard (BSC)provides amulti-dimensional view of organizational performance, typically across financial, customer, internal process, and learning perspectives.

Data-driven decision making emphasizes that relying on a single metric can lead to incomplete or biased conclusions. The BSC addresses this by integrating multiple KPIs into a cohesive framework aligned with strategic objectives.

Therefore, optionAcorrectly explains the distinction between a KPI and a BSC.

The principle offact-based decision-makingemphasizes using reliable data and objective analysis rather than intuition or opinion. In data-driven decision making, this principle exists primarily toreduce bias and increase trust in organizational plans and decisions.

When decisions are grounded in verified data, assumptions are challenged, personal biases are minimized, and outcomes are more predictable. This builds confidence among stakeholders and supports transparency and accountability.

Customer loyalty, waste elimination, and quality effectiveness may be indirect benefits, but the core purpose is ensuring that decisions are objective, defensible, and evidence-based. Therefore, the correct answer isD.

Thenet promoter score (NPS)measurescustomer loyaltyby assessing the likelihood that customers will recommend a company’s products or services to others. In data-driven decision making, NPS is a widely used indicator of customer satisfaction and long-term growth potential.

Customers are typically asked how likely they are to recommend the organization on a numerical scale. Responses are categorized into promoters, passives, and detractors, and the score is calculated by subtracting the percentage of detractors from the percentage of promoters.

NPS does not directly measure financial outcomes, employee performance, or quality assurance metrics. Instead, it serves as a customer-focused indicator that reflects overall perception and loyalty.

Therefore, the correct answer isB.

The primary problem with this survey issystematic error, which occurs when the data collection process consistently favors certain outcomes due to flawed design. In data-driven decision making, systematic error arises when a sampling method introduces bias that skews results in a predictable direction.

In this scenario, surveying only people living in California creates a location-based bias. Respondents are far more likely to prefer Amusement Park W because it is geographically closer, more familiar, and more accessible than Amusement Park X in Texas. This bias does not occur randomly; instead, it systematically influences responses toward one option, making the results unreliable for comparing overall preferences between the two parks.

Random error would involve unpredictable variation, which is not the issue here. Measurement bias relates to how questions are asked or measured, and information bias concerns inaccurate or misleading data reporting. The core issue is thenon-representative sample, which violates the principle of unbiased data collection.

Data-driven decision making emphasizes that valid conclusions require representative samples. Because the survey design inherently favors one outcome, the results cannot be generalized, makingsystematic errorthe correct answer.

The primary goal ofSix Sigmais tofoster a commitment to continuous improvementby systematically reducing defects and process variation. In data-driven decision making, Six Sigma uses statistical methods to improve quality, efficiency, and consistency across organizational processes.

Six Sigma emphasizes disciplined problem-solving through data analysis, root-cause identification, and process control. While reducing defects to 3.4 per million opportunities is a hallmark metric, the broader objective is embedding continuous improvement into organizational culture.

SIPOC is a supporting tool, leadership is a contributing factor, and collaborative planning forecasting and replenishment relates to supply chain management, not Six Sigma’s core purpose.

Therefore, the correct answer isD.