C207 Data-Driven Decision Making Practice Questions - Set 3 - Part 3

Correct Answer: Quantifying customer loyalty and satisfaction

NPS is a tool used to gauge customer loyalty by asking how likely customers are to recommend a product or service to others.

Correct Answer: Customers who give a score of 9 or 10

In an NPS survey, promoters are customers who rate their likelihood of recommending the company as 9 or 10, indicating high satisfaction and loyalty.

Correct Answer: Key performance indicators using visual representations such as charts and graphs

A KPI performance dashboard visually displays key performance metrics in charts and graphs, making it easy to track progress and performance.

Correct Answer: The difference between the actual performance and the target performance

In a balanced scorecard, variance measures the difference between actual and target performance, showing whether goals are being met.

Correct Answer: It cannot pinpoint the specific reasons for customer dissatisfaction

While NPS is easy to calculate, it does not provide detailed insights into the specific areas where customers are dissatisfied, requiring further investigation.

Correct Answer: The company has exceeded its target performance

A positive variance means that the company’s actual performance has surpassed its target, indicating better-than-expected results.

Correct Answer: Continuous

Temperature is a continuous variable because it can take any value within a given range and can be measured with decimal precision.

Correct Answer: Explain past performance by analyzing historical data

Descriptive analytics focuses on analyzing past data to understand trends and explain what has already happened, helping to inform future decisions.

Correct Answer: The participants, researchers, and data collectors all being unaware of the group assignments

In a triple-blind study, none of the participants, researchers, or data collectors know which group is receiving the treatment, reducing bias.

Correct Answer: The spread of the middle 50% of data points

The IQR measures the spread of the central 50% of data, providing insights into the variability of the middle portion of the dataset.