Which of the Following Statements Is True About RFM Analysis

question 40

Multiple Choice

Which of the following statements is true about RFM analysis?

• A) It ranks customers based on their purchasing power.
• B) It is a common type of noninteractive report.
• C) It uses unsorted data to produce an RFM score.
• D) It identifies groups of entities that have similar characteristics.

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Definitions:

HR Demand

Refers to the number and type of employees an organization needs to meet its current and future goals.

Forecasting

Estimation of future occurrences or trends using statistical methods and historical data.

HR Demand Forecasting

The process of estimating the future human resource requirements of an organization to achieve its goals.

Replacement Demand

The need to fill job positions that become vacant due to retirement, resignation, or dismissal, rather than due to the creation of new jobs.