Sumptuous Supermarket Has Large Amounts of Data About Its Customers

question 35

Multiple Choice

Sumptuous Supermarket has large amounts of data about its customers. To understand customer buying behavior, the company uses a process that automatically discovers connections in the collected data. Through this process, the company learns that people who buy carbonated drinks, typically also buy a pack of salted snacks. As a result, the manager of the supermarket places carbonated drinks near the shelf with chips and pretzels. In this scenario, Sumptuous Supermarket has most likely used _____.

• A) data integration
• B) data mining
• C) bar coding
• D) radio frequency tagging

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Definitions:

Variable Cost

Costs that fluctuate in direct proportion to changes in levels of output or activity within a business.

Fixed Cost

Expenses that do not change in total over a certain range of activity levels or time periods, such as rent, salaries, and equipment leases.

Administrative Expense

Costs associated with the general administration of a business, including salaries of senior executives, legal and financial fees, and other general expenses.

Fixed Cost

Overheads that are not affected by the volume of production or sales, covering rent, employee salaries, and insurance fees.