C207 Data-Driven Decision Making Practice Questions - Set 4 - Part 3

Test your knowledge of data-driven decision making concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A "detractor" in a net promoter score (NPS) survey is:

A customer who is neutral toward the company

A customer who is highly likely to recommend the company

A customer who is dissatisfied and unlikely to recommend the company

A customer who has never used the product

Question 42: In the context of a balanced scorecard, what does "innovation and growth" refer to?

Financial growth

Improvement in internal processes

Employee learning and development

Market share expansion

Question 43: A KPI performance dashboard is designed to:

Track key performance indicators using visual tools like charts and graphs

Measure customer satisfaction exclusively

Compare financial metrics across industries

Analyze employee attendance rates

Question 44: A balanced scorecard helps companies:

Focus only on financial metrics

Set strategic goals and measure performance in different areas

Reduce costs and increase profits

Increase production output

Question 45: A positive variance in performance means:

The company exceeded its target performance

The company fell short of its performance goals

The company achieved a neutral result

The company met its minimum goals

Question 46: What is an advantage of using a net promoter score (NPS) system?

It requires no data collection

It provides detailed reasons for customer dissatisfaction

It is easy to calculate and understand

It focuses on employee performance

Question 47: Which type of data does temperature represent when measured in degrees Fahrenheit?

Discrete

Continuous

Ordinal

Nominal

Question 48: What does the third stage of Davenport and Kim's Three-Stage Model of quantitative decision making involve?

Framing the problem

Solving the problem

Communicating the results

Gathering data

Question 49: A z-score of 2.5 means:

The data point is 2.5 standard deviations above the mean

The data point is 2.5 units away from the median

The data point is 2.5 units below the mode

The data point is within the interquartile range

Question 50: What is descriptive analytics used for?

To predict future outcomes

To explain past performance using historical data

To establish relationships between variables

To test hypotheses

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