Fin 511 Final Exam

Sample questions for midterm

1. In a skewed distribution, which of the following values is most likely to be dragged toward the longer tail of the distribution? a) the mean b) the mode c) the median d) none of the above

2. Which of the following RFM codes represents a potentially very valuable customer who hasn’t bought recently and should be encouraged to order? a) 511 b) 111 c) 151 d) 115 e) 555

3. Fixed costs are usually taken into consideration along with variable costs, in the computation of customer lifetime value. a) True b) False

4. If you mail out 1,500 catalogs, and 22 people respond and buy something from the catalog, what is the response rate?

5. Develop a customer profile using the BBB.sav database for the typical customer living in the state of New Jersey.

____

What is the average amount of money spent on books among our NJ customers? $____

What is the average amount of money spent on nonbooks among our NJ customers $____

What is the type of book most likely to be bought by our NJ customers? ________

What is the correlation between months since last purchase and likelihood of responding to the last test catalog (Bought 'Art History of Florence ') in BBB.sav? Is it statistically significant? Is it large or small?

7. Conduct a t-test to see whether the number of purchases of children’s books in BBB.sav made by men and women is different. a) How many purchases of children’s books, on average, are made by women? By men? b) Is the difference statistically significant?

8. How many BBB.sav customers have purchased one or more