C207 Data-Driven Decision Making Practice Questions - Set 4 - Part 1

Correct Answer: To assess whether the benefits of a project justify the costs

Cost-benefit analysis is used to evaluate whether the benefits of a project or decision outweigh the associated costs, helping governments make informed decisions.

Correct Answer: The number of times John will use the bridge

The personal use of the bridge by one individual (John) is not relevant to a cost-benefit analysis, which should focus on broader public impact.

Correct Answer: A coach adding more cones to an obstacle course and seeing how the athlete performs

Item Response Theory focuses on how test-takers respond to different levels of difficulty, which aligns with the coach’s method of increasing challenge.

Correct Answer: A massive volume of data that traditional methods cannot process

Big data refers to extremely large datasets that require advanced tools and techniques for storage, processing, and analysis.

Correct Answer: A test score consists of both the true score and random error

True Score Theory posits that each observed score is composed of a true score, which reflects the actual performance, and random error.

Correct Answer: The total number of existing cases of a disease

Prevalence counts all existing cases of a disease, providing a snapshot of how widespread the condition is at a given time.

Correct Answer: Weighted composite index

The CPI is a weighted composite index that measures the price level of a "basket" of consumer goods, reflecting the overall cost of living.

Correct Answer: The change in price or quantity of a single good over time

A simple index number measures the relative change in the price or quantity of one item over a specified period, using a base period for comparison.

Correct Answer: The number of new cases of a disease during a specific time period

Incidence refers to the number of new cases that arise in a given time frame, helping to track the spread of diseases.

Correct Answer: The percentage of new cases compared to the entire population over time

Cumulative incidence measures the proportion of new cases over time compared to the population at risk, offering insights into the spread of a condition.

Correct Answer: It includes a true zero point

Ratio data has a true zero point, meaning that zero represents the complete absence of the quantity being measured, which is a distinguishing feature from other types of data.

Correct Answer: The Consumer Price Index (CPI)

The CPI is a weighted composite index because it combines various goods and services, giving more weight to items that are more commonly purchased by consumers.

Correct Answer: The time required to regain the money spent on a project

The payback period measures how long it takes to recover the costs of an investment, helping decision-makers assess the financial viability of projects.

Correct Answer: Using results as the central measure of performance

RBM is a management approach that prioritizes results, tracking outcomes to assess the success of programs and interventions.

Correct Answer: The short-term effect that outputs have on an organization

In RBM, outcomes refer to the short-term effects of the project outputs, reflecting the immediate changes in the organization or program.

Correct Answer: Index number

While prevalence, incidence, and risk factors are key components of epidemiology, index numbers are used in economic and statistical analyses, not epidemiology.

Correct Answer: 120

The simple composite index is calculated by comparing the total number of house additions in 2013 to the base period of 2012. ((25 + 29) / (9 + 21 + 15)) × 100 = 120.

Correct Answer: How many standard deviations a data point is from the mean

A z-score measures the number of standard deviations a specific data point is from the mean, indicating how far it is from the center of the distribution.

Correct Answer: U.S., 20%

The U.S. has a higher prevalence of athletes winning medals because 60 out of 300 athletes won (20%), while France had 9 out of 100 (9%).

Correct Answer: Multiple items, without weighing any of them more significantly than the others

A simple composite index is calculated by combining data from multiple items equally, without giving any more weight to one than another.