OM Data Analysis & Decision Making 2

Question 1

A manager notices that sales data shows a strong correlation (r = 0.92) between advertising spend and revenue. What is the most appropriate next step before concluding that increased advertising causes higher revenue?

Accepted Answer

Conduct a controlled experiment to test causation

Answer

Correlation does not imply causation; a controlled experiment is needed to establish a true cause-and-effect relationship.

Question 2

Which type of data visualization is BEST suited for showing the distribution of a continuous variable such as employee performance scores across a department?

Accepted Answer

Histogram

Answer

A histogram displays the frequency distribution of a continuous variable by grouping data into bins.

Question 3

An organization uses a balanced scorecard. Which of the following perspectives does the balanced scorecard NOT typically include?

Accepted Answer

Competitive intelligence perspective

Answer

The four standard balanced scorecard perspectives are financial, customer, internal process, and learning & growth—competitive intelligence is not one of them.

Question 4

A decision tree analysis assigns probabilities and monetary outcomes to each branch. Which metric is used to select the optimal decision node?

Accepted Answer

Expected Monetary Value (EMV)

Answer

Expected Monetary Value (EMV) multiplies each outcome's probability by its value and sums the results to identify the best decision node.

Question 5

When performing a root cause analysis using the '5 Whys' technique, what is the primary goal?

Accepted Answer

To identify the fundamental cause of a problem by repeatedly asking why it occurred

Answer

The 5 Whys technique drills down through symptom layers by asking 'why' repeatedly until the root cause is uncovered.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Data Analysis & Decision Making 2