ROI Quiz
Let's see what you know about ROI. Take this very simple ROI quiz.
Questions and Answers
- 1.
The ROI Methodology generates just one data item, expressed as a percentage.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The ROI Methodology generates six types of data: reaction, learning, application, impact, ROI, and intangible benefits.Rate this question:
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- 2.
A program with monetary benefits of $200,000 and costs of $100,000 translates into a 200% ROI.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Actually, the ROI would be 100%.Rate this question:
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- 3.
The ROI Methodology is a tool to strengthen and improve the HR/learning and development process.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Program evaluation is all about process improvement.Rate this question:
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- 4.
After reviewing a detailed ROI impact study, senior executives will usually require ROI stuides on all programs and projects.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
While senior executives value the data derived from an ROI study, they are quick to realize it is not necessary (nor feasible) to conduct ROI studies on all programs.Rate this question:
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- 5.
ROI impact studies, with all six types of data, should be conducted very selectively, usually involving 5-10% of programs.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This is true. Not all programs need to be evaluated to impact and ROI. Programs and projects that are expensive, have a long life-cylce, reach a large audience, and have the attention of senior executives and administrators are candidates for evaluation up to impact and ROI.Rate this question:
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- 6.
While it may be a rough estimate, it is always possible to isolate the effects of a program.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
While control group arrangement is the ideal approach to isolating the effects of a program on results, setting up one is not always feasible. However, there are other options. One technique that is always an option is the use of estimates.Rate this question:
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- 7.
A program costing $100 per participants, designed to teach basic computer skills is an ideal candidate for an ROI impact study.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
We would say false. If the course is providing employees the fundamental skills they need to do their job and it is somewhat inexpensive, you probably do not want to evaluate the program up to ROI.Rate this question:
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- 8.
Data can always be converted to monetary value, credibily
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The key words here are "always" and "credibly." While you can always convert a measure to money, that does not mean you should always convert it to money. If converting a measure to monetary value costs too much or positions the evaluation to be perceived as lacking credibility, don't convert the measure money. It is better to have a moderate to low ROI with strong intangible benefits than an extremely high ROI that you spent a lot of money on and no one believes you.Rate this question:
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- 9.
The ROI Methodology contains too many complicated formulas.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Of course not. The two very simple formulas, the BCR and ROI, are developed by comparing the monetary benefits of a program with the costs -- it's that simple.Rate this question:
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- 10.
The ROI Methodology can be implemented for about 3-5% of my HR/learning and development budget.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
That is correct. Once your system is in place and you are working with the standards and guidelines as they are intended, you can conduct all of the evaluation you need to for only a small portion of your budget.Rate this question:
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- 11.
ROI is not future oriented; it only reflects past performance.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
While the true ROI of a program is developed on past performance, ROI is routinely forecast for programs and projects before they ever get off the ground.Rate this question:
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- 12.
ROI is not possible for soft skills programs.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
ROI is possible for all types of programs. Soft skills programs such as leadership development and coaching are ideal candidates for ROI because they are the types of programs on which many executives shine the spotlight.Rate this question:
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- 13.
If an ROI impact study, conducted on an existing, routine program, shows a negative ROI, the client is usually already aware of the program's lack of success.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
While from time-to-time some executives are unaware that a program is adding no value, for the most part, they are very much in touch with the success (or lack thereof) of HR/learning and development programs.Rate this question:
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- 14.
The best time to consider an ROI evaluation is three months after the program is completed.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
No way. The best time to think about ROI is before the program is designed.Rate this question:
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- 15.
The ROI Methodology is a process improvement tool and not a performance evaluation tool for the HR/learning and development staff.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The ROI Methodology is intended to evaluate programs, not people.Rate this question:
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- 16.
If senior executives are not asking for ROI, there is no need to pursue the ROI Methodology.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
If senior executives are asking for it and you don't have it, you're probably too late. Develop capacity in the ROI Methodology sooner than later.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 17, 2022Quiz Edited by
ProProfs Editorial Team -
Oct 04, 2019Quiz Created by
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