Information on Recency and Monetary Value of Purchases Is Enough

question 39

True/False

Information on recency and monetary value of purchases is enough to identify most profitable customers.

---

Definitions:

Residuals Plot

A graphical representation of the residuals (the differences between observed and predicted values) in a regression analysis, used to assess the fit of a model.

Nonlinear

Describing a system or process that does not follow a straight line or direct proportionality in its response or behavior.

Spread

The extent to which a set of data points are spread out or dispersed, often indicative of the variability within the dataset.

Residual Plot

A graphical representation used in regression analysis to show the differences or residuals between observed and predicted values.