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| Section | Objectives |
|---|---|
| Probability and Statistical Inference | - Probability concepts and distributions - Sampling methods and sampling error |
| Decision Making Models | - Risk and uncertainty in decision-making - Decision trees and expected value analysis |
| Data Fundamentals and Business Analytics | - Descriptive statistics (mean, median, variance, standard deviation) - Data types and data collection methods |
| Hypothesis Testing | - t-tests, chi-square tests, and significance testing - Null and alternative hypotheses |
| Regression and Correlation Analysis | - Linear regression modeling - Interpreting correlation and causation |
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NEW QUESTION # 119
What are two benefits of good data quality management in improving business decision-making?
Choose 2 answers.
Answer: A,C
Explanation:
Good data quality management plays a critical role in improving business decision-making by ensuring that data is accurate, complete, and reliable. One key benefit is that itensures there are no missing data points, which helps maintain data completeness. Missing data can distort results, reduce analytical power, and lead to incorrect conclusions, especially in descriptive and inferential statistics.
Another important benefit is that data quality managementmitigates undetected errors from the data-entry process. Errors such as duplicate entries, incorrect values, or inconsistent formats can significantly bias analysis if left unnoticed. Through validation checks, cleaning procedures, and governance standards, organizations reduce the risk of flawed insights.
While good data quality supports better analysis, it does not guarantee statistical significance, as significance depends on sample size, variability, and study design. Similarly, it does not necessarily make the statistical process faster; in fact, data cleaning can be time-consuming. However, it improves theaccuracy and trustworthinessof outcomes.
In data-driven decision making, high-quality data is essential because decisions are only as good as the data used to support them. Therefore, the correct answers areA and D.
NEW QUESTION # 120
Which input could be used to create and evaluate a process that would improve an organization's performance?
Answer: D
Explanation:
Data gathered from a customer survey can be used to create and evaluate a process that improves organizational performance because customer feedback provides direct evidence about satisfaction, service quality, unmet needs, and areas requiring change. In data-driven decision-making, effective process improvement begins with relevant and reliable inputs, and customer survey data are especially valuable because they reflect the experiences of the people receiving the organization's products or services. These data can reveal trends, pain points, expectations, and opportunities for redesign. Suggestions from a competitor may be informative, but they are not as direct or reliable as structured internal evidence gathered from actual stakeholders. Information from an employee handbook outlines policies rather than performance inputs, and industry regulations define compliance boundaries rather than improvement opportunities. Since the question asks which input can help create and evaluate a better-performing process, the most appropriate answer is data gathered from a customer survey.
NEW QUESTION # 121
A firm seeks to sharply reduce sales lead times to enhance sales effectiveness and productivity. Which action should the firm take to accomplish this?
Answer: B
Explanation:
To sharply reduce sales lead times, the firm should deploy a customer relationship management tool. A CRM system helps organize customer information, automate follow-up processes, track sales opportunities, streamline communication, and improve coordination across the sales cycle. By reducing manual delays and improving access to customer data, a CRM can make the sales process faster and more efficient, directly supporting stronger sales effectiveness and productivity. Increasing the research and development budget would not address sales-cycle speed. Preparing a media campaign may generate interest or leads, but it does not necessarily reduce the time required to move prospects through the sales process. Additional quality assurance measures are more relevant to process quality and defect prevention than to reducing lead times in sales operations. Because the objective is to improve the speed and efficiency of handling prospects and customers, the most targeted and practical solution is the deployment of a CRM tool. Therefore, the correct answer is to deploy a customer relationship management tool.
NEW QUESTION # 122
A clothing company wants to predict sales figures based on the amount spent on advertising.
Which type of regression analysis should this company use?
Answer: C
Explanation:
When predicting a continuous outcome based on a single predictor, data-driven decision making recommends simple linear regression. In this case, sales figures are continuous, and advertising spend is a single explanatory variable.
Linear regression models the relationship between one independent variable and one dependent variable by estimating a straight-line relationship. Time series regression is used when data are indexed over time, logistic regression is used for binary outcomes, and multiple linear regression requires multiple predictors.
Because the company is using only advertising spend to predict sales,linear regressionis the most appropriate method. Therefore, the correct answer isB.
NEW QUESTION # 123
Which tool sorts data into categories to help teams identify the most significant factors that contribute the most to problems?
Answer: A
Explanation:
APareto chartsorts data into categories and ranks them by frequency or impact. In data-driven decision making, this helps teams focus on the most significant contributors to a problem.
The chart combines bars and a cumulative line to highlight which factors account for the largest share of issues. This aligns with the Pareto principle and supports prioritization of improvement efforts.
Run charts track data over time, flowcharts describe processes, and cause charts are not a standard quality tool. Therefore, the correct answer isC.
NEW QUESTION # 124
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