A Company Uses Data Mining to Determine Which of Its

question 12

Multiple Choice

A company uses data mining to determine which of its customers makes a purchase of at least $500 every two months.

• A)customer accrual
• B)customer acquisition
• C)customer retention
• D)market basket analysis
• E)customer abandonment

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Definitions:

Sharpe Measure

A measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy, calculated as the difference between the asset's returns and the risk-free rate, divided by the asset's standard deviation.

Forecasting Ability

The capability to predict future trends, prices, or outcomes based on historical data, trends, and analysis.

Tracking Error

The difference between the return on a managed portfolio and that of a benchmark portfolio against which the manager is evaluated.

Benchmark Return

The standard against which the performance of a security, mutual fund, or investment manager can be measured.