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Exam Code: Data-Driven-Decision-Making
Exam Name: VPC2Data-Driven Decision MakingC207
Updated: Aug 21, 2026
Q & A: 125 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Statistical Concepts & Descriptive Analytics | 25% | - Measures of central tendency, dispersion, distribution - Data types, measurement scales, sampling methods - Data visualization: charts, graphs, dashboards |
| Topic 2: Decision Models & Prescriptive Analytics | 15% | - Decision trees, payoff matrices, expected value - Optimization, sensitivity analysis - Quality & process improvement tools |
| Topic 3: Probability & Statistical Inference | 20% | - Correlation vs. causation - Probability rules, distributions, expected value - Hypothesis testing, p-values, confidence intervals |
| Topic 4: Foundations of Data-Driven Decision Making | 20% | - Types of analytics: descriptive, predictive, prescriptive - Ethics, privacy, and data governance - Role of data in business decisions |
| Topic 5: Predictive Analytics & Regression | 20% | - Interpreting coefficients, R-squared, significance - Forecasting & trend analysis - Simple & multiple linear regression |
1. Which type of analytics classification uses experimental design and optimization to suggest a course of action?
A) Descriptive analytics
B) Diagnostic analytics
C) Prescriptive analytics
D) Predictive analytics
2. A digital marketing manager wants to determine whether conversion rates from the company's latest email campaign are about the same as the industry average or significantly different. Which statistical concept should be used to measure the data set?
A) Standard deviation
B) Mean
C) Median
D) Bell curve
3. What is the basic difference between evaluating costs and benefits in the public and private sectors?
A) Private projects generate considerable revenue.
B) The benefits of public projects are easily quantifiable.
C) The benefit of private projects is general public welfare.
D) The costs associated with public projects are minimal.
4. 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 decreases its advertising expenditures, its sales will increase.
D) If the big box store increases its advertising expenditures, its sales will decrease.
5. What classifies analytics as descriptive, predictive, or prescriptive?
A) The kind of software used for the analysis
B) The sample size and analysis technique used
C) The data validity and reliability
D) The purpose and methods
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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