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:

UCC

The Uniform Commercial Code, a set of laws that regulate sales and commercial transactions in the United States.

Express Warranties

Explicitly stated assurances provided by a seller to a buyer regarding the quality, condition, or performance of a product or service.

Express Warranty

is a seller’s promise or guarantee that a product will meet certain quality and reliability standards, explicitly stated in the contract or sales agreement.

Credit

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future.