Chapter 7

_______ is an ancillary benefit to data mining

Unusual customer activity

Data mining helps answers all of the following questions except _______

Which database entitiy is the optimal data repository

A _________ would be a less-than-optimal source of information for data mining

operational data store

RFM is a _________ technique

Simple

RFM is a ___________ technique

Sorting

What variable cluster categories are related to cluster data mining efforts?

: Demographic, psychographics, behavior, geographic

Which database entity(s) are normally used as a source of information for data mining?

A data mart or a data warehouse

Product usage rate is an example of ____________ variable

Behavior

________ is an example of a data mining process

Browsing information in search of patters and anomalies

_____ is the process of placing customers into groups such that everyone in the group has similar traits

Clustering

By adding the modeling component, organizations can enhane data minding by making is

Cost-justified, Measurable and optimal

What is primary data?

Data acquired directly from the original source

What is derived data?

Data created or inferred from the observation of other data

Data mining usually accesses a ________ for its souce of information

Data mart

Identifying transaction buyers is a ________ function

Data mining

A _____ would be the best source of information on the last 10 years of customer transactions

Data warehouse

A _________ can be learned by splitting the source set into subsets base on an attribute value test

Decision Tree

What is metadata?

Metadata is data that describes other data.

Home ownership is an example of a ___________Variable

Demographic

A data warehouse could contain __________

Demographic information, product information, promotion information, and prospect information

Recently the term "dashboard" is used to describe a _______

EIS

What is EIS?

EIS is an abbreviation for Executive Information Systems. It provides information for high-level decision making

________ is not a common data mining method

ERP

T/F Cluster analysis uses three key variables as a part of its process: Recency, frequency and monetary

False

T/F Data mining has many benefits, but the ability to create new differentiation strategies is not one of them

False

T/F Fraud detection is a major benefit of dtat mining

False

T/F Is is extremely hard, if not impossible, for a small business to perform data mining

False

______ is not a challenge in data mining

Fraud detection

Define an ancillary benefit of data mining?

Fraud detection.

State and climate are examples of a _________ variable

Geographic

________ Is not a data mining activity

POS sales transmission

Personality and lifestyle are examples of a _________ variable

Psychographic

__________ Is not a statitical model

RFM

What are the three variables used by an RFM data mining effort?

Recency, Frequency, and Monetary.

. Identify three data mining approaches excluding RFM, decision tree and clustering?

Regression analysis, correlation, data stream

CLuster analysis would not include ______ as a variable category

Scalable

Which industry is usually looked on as a data mining leader and why?

The financial services industry due to their long history of managing complex customer transactions as part of their core competency.

RFM is dependent on the use of ______ variable

Three

The best industry example of dynamic CRM is the

Toy

Decision trees are structured like a tree, where the leave represent classification and the branches represent conjunction of feature taht lead to these classifications

True

T/F A major data mining challenge is organizational obstacles to attaining the data necessary for analysis.

True

T/F An ancillary benefir of data minign is identification of unuasial customer activity

True

T/F Consumer Fatigue prevention is a benefit of data mining

True

T/F Fuzzy logis is not a data mining method

True

T/F Metadata is data that describes other data.

True

T/F Most data mining efforts use a data mart as their souce for data and information

True

T/F Organizations in the financial services industry are very proficient in data mining techniques

True

T/F RFM is an easy and cost effective data mining technique

True

T/F Regression analysis and correlation are statistic methods that can be used as part of the data mining process

True

T/F The casino industry is one of the best examples of dynamic CRM

True