​Data Driven Decision Making

question 92

Essay

​Data Driven Decision Making
Kroger Groceries provides store managers flexibility to determine prices for a number of popular items they carry because demand is affected primarily by local conditions that managers are more aware of.To make sure managers use this discretion wisely,managers are rewarded with bonuses based on quarterly sales.With improvements in data collection and analysis,the "quants" in corporate headquarters can run many small experiments.Doing so allows them to understand nuanced patterns in consumer demand that had been un-noticed previously.How does this affect manager compensation?

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Definitions:

Peritubular Capillaries

Tiny blood vessels that surround the tubules in the kidney, involved in the exchange of substances between blood and the tubular fluid.

Glomerulus

A network of capillaries located in the nephrons of the kidney that plays a crucial role in filtering blood to form urine.

Grasshoppers

Insects of the suborder Caelifera within the order Orthoptera, known for their powerful hind legs for jumping.