Which of the Following Is an Appropriate Way to Analyse

question 48

Multiple Choice

Which of the following is an appropriate way to analyse customer profitability?

• A) The cost of servicing a customer calculated as a percentage of the customer's gross margin.
• B) The cost of servicing a customer as a percentage compared to company or industry norms.
• C) The cost of servicing a customer calculated as a percentage of the customer's gross margin, examined over several years.
• D) All of the given answers

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Definitions:

Central Limit Theorem

A statistical theory that states that, given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sample Mean

The average value of a set of observations or measurements taken from a sample.

Standard Error

A statistic that measures the variability or spread of sampling distribution means.

Sample Size

The quantity of measurements or repetitions contained within a statistical sample.