How Would the Banking Industry Use Business Intelligence

question 12

Multiple Choice

How would the banking industry use business intelligence?

• A) Analyze popular vacation locations with current flight listings
• B) Understand customer credit card usage and nonpayment rates
• C) Compare the demographics of patients with critical illnesses
• D) Predict claim amounts and medical coverage costs

---

Definitions:

Monopolistic Competitor

A market structure where many firms offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.

Excess Capacity

describes a situation where a firm produces less than its total output capacity, usually resulting in inefficiencies and higher production costs.

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Elastic

A characteristic of supply or demand that indicates a high responsiveness to changes in price.