Prescriptive Analytics Quiz >> Customer Analytics
1. What is the goal of prescriptive analytics?
- Make a recommendation on an action that will optimize a goal
- Explain the relationship between actions and outcomes
- Optimize a function
- Develop a model to describe the data
2. When would descriptive and predictive results need additional analysis?
- When there are multiple explanations to the same data we observe
- When there is competition involved
- When the firm can make a choice of different actions to take
- All answers are correct
- When there are strategic consumers involved
3. Which one of the following is an example of a goal/objective?
- The shape of a product
- The price of a product
- The quantity of a product sold
- The color of a product
4. What is an action? (Please check all that apply)
- A part of the model under the direct control of the firm
- A choice that impacts the goal
- The price of a product
5. What does a model do?
- Finds a goal
- Tells us how to make the maximum profit
- Explain the relationship between actions and parameters to the goal
- Shows in a graph how price changes with quantity
6. When does maximizing revenue also maximize profit? (Please check all that apply)
- When the marginal cost is zero
- When the marginal revenue equals marginal cost
- When there is no cost to the product
7. Why does it matter to know how a demand curve was generated?
- We may give a different recommendation for different models
- Knowing the truth always helps
- Correlation does not imply causation
- It helps find errors in the data
8. Which one of these is an example of a tradeoff?
- Decreasing the cost of production increases profit
- Showing more ads to consumers makes them buy more products
- Increasing the quality of a product increases it sales
- Discounts on a product brings more buyers now and makes buyers wait for discounts in the future
9. Why is it important to consider strategic interaction?
- You need to ensure you are asking the right question
- All of the above
- Strategic interaction can affect the validity of your model
- It can affect the recommendations you make
10. What does online retargeting do?
- Shows ads to people after they visited a specific website
- Show lots of ads to people
- Tries to remind people to buy more
- Targets consumers better with ads
