A Local Grocery Market Is Studying Whether to Offer a Loyalty

question 16

Essay

A local grocery market is studying whether to offer a loyalty program to its customers.In its final analyses the following groups are being used to categorize loyalty card customers: family income and number of children.Using the classification tree below,estimate the percentage of customers with an income of $50,000 with 2 children who would use a loyalty card

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Definitions:

Investment Turnover

A ratio that measures how effectively a company uses its invested capital to generate sales revenue.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as a percentage of the investment's profit to its cost.

Support Department Cost

Support department cost refers to the expenses associated with departments that provide essential services or support to production departments but do not directly engage in the production process.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of net sales to average invested assets.