The definition of a good customer is one who is profitable immediately upon acquisition.
a. True
b. False
Indicate whether the statement is true or false
Question 2If the correlation between two variables x and y is equal to 0.90, which of the following is TRUE?
a. x and y are highly related, whereby a positive change in x is accompanied by a positive change in y.
b. The two variables x and y are not related to one another.
c. x and y are highly related, whereby a negative change in x is accompanied by a positive change in y.
d. The coefficient of determination is equal to 0.81.
e. An increase in x is accompanied by a decrease in y.
Question 3Customers only defect if they are not satisfied with the enterprise's products and services.
a. True
b. False
Indicate whether the statement is true or false
Question 4An analyst has a set of normally distributed internally scaled data resulting from two observations on the same sample of subjects, and he wishes to investigate if there is any difference in these two means. The appropriate statistical procedure is
a. a z-test for difference in two means.
b. analysis of variance (ANOVA).
c. a paired samples t-test.
d. a chi-square goodness-of-fit test.
e. regression analysis.
Question 5Increasing customer retention is important in increasing enterprise profitability.
a. True
b. False
Indicate whether the statement is true or false
Question 6Suppose the ordinary least-squares approach to a regression analysis produced the following: Y = 20 - 39X and R2 = .90 . Which of the following statements is FALSE?
a. For every unit change in X there is a corresponding negative change in the average value of Y of 39 units.
b. 90 of the variation in Y is associated with variation in X.
c. The slope of the line is 20.
d. The average value of Y given x = 10 is 370.
e. If X = 0, then Y = 20.
Question 7Most enterprises need to allocate more resources to customer retention, not to customer acquisition.
a. True
b. False
Indicate whether the statement is true or false
Question 8Suppose that the relationship between sales (Y, in 000) and number of salespeople (X) is represented by the following regression equation: Y = 105.2 + 35.8X. What will average sales be equal to when 10 salespeople are used?
a. 358,000
b. 463.20
c. 358.00
d. 463,200
e. More information is needed to answer this question.
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