Which of the Following Illustrates the Use of Information Systems

question 16

Multiple Choice

Which of the following illustrates the use of information systems to focus on market niche?

• A) A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy
• B) A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
• C) A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules
• D) A grocery store chain's use of information systems to produce products and services at a lower price than competitors
• E) An airline's use of information systems to analyze detailed data on customers to determine each customer's profitability

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Definitions:

Risky Securities

Financial instruments that carry a high level of risk, offering the potential for higher returns in exchange for greater likelihood of loss.

Risk Premiums

Additional returns demanded by investors for taking on higher risk, varying according to the perceived risk of the investment.

Probability Distribution

A function in statistics that enumerates all conceivable values and their associated probabilities for a random variable within a predetermined range.

Variance

A measure of the dispersion or spread of a set of values, indicating how much the numbers in the set differ from the mean.