In Grouping Customers into Separate Types According to Their Spending

question 35

Multiple Choice

In grouping customers into separate types according to their spending, internet browsing, payment method, and age a firm is engaging in what sort of analysis?

• A) Data mining
• B) Cluster analysis
• C) Outlier detection
• D) Linear regression

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Definitions:

Income Tax Rate

The portion of a person's or company's earnings that is handed over to the state in the form of taxes.

Deferred Income Tax Liability

A tax obligation that a company owes but has not yet paid, resulting from temporary timing differences between its accounting earnings and its taxable income.

Potential Benefit

The future gain or return that may be obtained as a result of an investment or action.

Earnings Quality

Pertains to the degree to which reported income provides a true representation of the company's financial performance.