Which of the Following Is True About Data Mining Applications

question 2

Multiple Choice

Which of the following is true about data mining applications?

• A) They use sophisticated mathematical techniques.
• B) They use sophisticated statistical techniques.
• C) Their report delivery is more difficult than report delivery for reporting systems.
• D) Both A and B
• E) All data mining applications have many different users to support.

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Definitions:

Payback Period

The duration of time it takes for an investment to recoup its initial cost, often used to assess the risk or profitability of a project.

Cash Flows

The net amount of cash being transferred into and out of a business, influencing the company's liquidity, solvency, and overall financial health.

Discounted Payback Method

A capital budgeting technique that calculates the time required to recoup the initial investment in present value terms.

Normal Cash Flows

Cash flows that occur in a predictable pattern, where an initial outlay is followed by a series of income receipts.