You Work for a Retail Clothing Chain Whose Primary Outlets

question 81

Multiple Choice

You work for a retail clothing chain whose primary outlets are in shopping malls, and you are conducting an analysis of your customers and their preferences. You wish to find out if there are any particular activities that your customers engage in, or the types of purchases made in the month before or after purchasing select items from your store. To do this, you will want to use data mining software that is capable of

• A) identifying associations.
• B) identifying clusters.
• C) identifying sequences.
• D) classification.

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit from operations, often involving minimizing costs and maximizing revenues.

Negative Externality

A negative externality exists when a product or decision results in a negative effect on a third party not directly involved in the transaction.

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often associated with public goods or services.