In this blog you will find the correct answer of the Coursera quiz Business Metrics for Data Driven Companies Coursera mixsaver always try to bring the best blogs and best coupon codes
Which of the following is NOT an example of a business metric?
- Sales revenues for three brands of baby formula for a month
- The percentage of returning customers at a chain restaurant
- The New York State sales tax rate
- The average time visitors remain on the company’s web site
Which of the following business metrics is an example of a revenue metric?
- Percent defective items from an assembly line
- Rental prices of apartment leases by locations
- Average days inventory
- Customer satisfaction with a product
Which of the following business metrics is an example of a profitability metric?
- The annual sales record of a company that makes phone apps
- How many fresh baked cakes have to be thrown away at the end of the day unsold
- A grocery store’s tracking record of customers’ fish purchases
- Total annual costs of goods sold of an office product store
Which of the following business metrics is an example of a risk metric?
- The loss due to unsold fresh fruits each year at a grocery store
- Winter jacket sales during summer time
- Monthly negative cash flow for a start-up
- Days inventory of computers in an electronics store
Identify which category the following business metric belongs to:
Units sales segmented by new and recurring customer
- Revenue metric
- Profitability metric
- Risk metric
amount an airline spends on aviation fuel each month is what type of metric?
- Revenue metric
- Profitability metric
- Risk metric
An airline’s daily flight from Phoenix to New York is usually full, except for flights on Tuesdays and Wednesdays. What is the first change the airline should try?
- Increase the number of flights per day on Mondays, Thursdays, Fridays, Saturdays and Sundays.
- Make advertisements about traveling on Tuesdays and Wednesdays to encourage more people travel on these two days.
- Decrease flight crews on Tuesdays and Wednesdays.
- Offer discounts for Tuesday and Wednesday flights to customers.
The case above (Question 7) is an example of a ______ metric.
One online shopping business found that 20% of shoppers quit during the checkout process without buying anything. A good next step would be:
- Add a small pop-up window on the checkout page with the texts “We are sorry if you are having trouble when checking out. We will fix it later.”
the reason that shoppers are dropping out of an online checkout is unknown, concluding
that shoppers don’t understand the process well enough, are having second
thoughts because prices are too high, or are simply irritated and need an
apology, would be nothing more than a guess. A much better approach is to
determine the real factors influencing dropout rates. This can be done through
randomized experiments known as “A/B” Testing.
are randomly assigned to one of two groups: a group using the current process,
and a group where minor changes are made to the process which may improve
customer retention. Changes that result in significant improvement are kept,
and others discarded. The video, Revenue
Metrics: Amazon.com as a Leading Example of the Use of Dynamic Metrics – Part 2
at 3:23-4:46 discusses Amazon as an example of the sophisticated use of A/B testing
for revenue optimization.
- Send those customers a letter, email, or text with detailed instructions on how to use the checkout feature.
- Offer discounts to the 80% of customers who complete checkout as an encouragement for their patience.
The average number of days inventory is held should be minimized for ALL of the following reasons EXCEPT ________.
- Some products will be wasted completely if they don’t get purchased by a certain time
- Customers are frustrated if something they want is not in stock
- It costs money to store the products
- The longer a product stays in inventory, the less likely it will be purchased
- The longer the negative float, the more interest a business has to pay
What is the estimated days inventory of Company X based on the information below?
Company X’s annual report listed a year-end inventory of $35.4 million, and annual cost of goods sold of $137.9 million.
- 93.7 days
- 67.2 days
- 3.9 days
- 94.3 days
A company sells its services “Net 60.” If it delivers the goods and provides an invoice in March, when can the company expect to be paid?
The primary reason Egger’s Roast Coffee ran out of cash was:
- Rapid growth
- Inefficient production
- Unsold inventory
- Lack of innovation
To be a best-seller on Amazon, your book needs to…
- Be popular and have good reviews
- Be one of the 1,000 best-selling books on Amazon
- Be sold all over the world
- Be one of the top selling books in its Amazon topic subcategories
Amazon’s “frequently bought with” feature _________.
- Offers discounts if you buy two books
- Tells you how frequently the two books are bought together
- Is optimized to maximize Amazon’s revenues
- Is customized for your search terms
Working in the Business Data Analytics Marketplace
Data Scientists most often enter into that
Starting as a Business Analyst
and gaining experience and additional technical skills on the job
Earning a doctorate degree in statistics or
experience other than an aptitude working with quantitative data is required
Earning a masters degree in data science
Why is it important for Business Analysts to
have “local knowledge” of business sectors?
Business Analyst typically
work in a specific business sector, such as insurance, and every sector has
specialized metrics developed for that sector.
Clients expect Business Analysts to be
able to discuss their specific business environments in detail
Client provided data typically only
contains “local knowledge”
All of the above
should a Business Data Analyst have SQL skills?
To retrieve data from different types of
databases throughout the organization
To increase their efficiency and autonomy
To be able to combine data from multiple
sources to create new data sets and answer new questions.
All of the above.
or False: “NONE of the nine skills required of all Business Data Analysts are
part of the skills used regularly by the typical software engineer.”
True or False: Strategic consulting firms with a
software/systems integration focus often introduce the latest methods for
achieving competitive advantage into a particular vertical market, such as
retail pharmacies, which forces other companies in that vertical to use the
same methods to stay competitive.
Hardware & software companies compete in
a market that has a very unusual cost structure. This is because:
These types of companies derive their
value from developing and delivering proprietary intellectual property.
They incur almost all their
costs up front, before the first product is sold, while the incremental cost to
create one more unit of the product is very low.
It has high variable costs and low fixed
All of the above.
Data Analyst Tiffany Yu advises that in order to learn to write SQL queries
well enough to be able to start gathering information for yourself, you will
need to prepare (study) for about:
A University Semester Course
the five business types represented among US companies, Traditional Strategic
Business Consulting firms are the least likely to hire software engineers and
technical project managers. Why?
Consulting generally does not include developing or installing technology.
Strategic planning in the corporate world
is critical to a firm’s success
Analysts represent the largest single job
type in these types of firms
These firms focus on ways
to improve business processes, such as increasing revenues and reducing risk.
other type of Company represents the biggest threat to “bricks and mortar”
Hardware and Software Companies
Business Consulting firms with an IT
Traditional Strategic Business
software tool is Data Scientist Dai Li referring to, when he says, “Of course I
also use [it]. It sounds like [it] is more nontechnical, but actually it is a
very good tool. You can do a lot of data
processing, data analysis, and data modeling if you are using [it] with very
current world leader in market share for remote (“cloud-based”) hosting of
other companies’ data and applications is:
brick and mortar businesses to survive digital competition, the most
important factor is:
Does the company deliver
its product or service as quickly as its online competitors?
Brand Awareness and customer loyalty
term “Point-of-sale customization” means:
companies are at a disadvantage because they can’t track history as well as online
online customer is unique and therefore can and should be shown different prices
is possible to attract new customers by using more customized incentives
individual customers with coupons or other special offers when they visit a
store, based on their past purchase history
strategy which will definitely NOT succeed for Barnes & Noble in its
struggle with Amazon is:
coffee, food, and non-book gift items
Barnes and Noble into more of an
exclusive literary club for paying members
more resources into their web presence and online sales
lectures, classes, and other social events related to books in its stores
is the primary difference in business model between the two Digital Companies
Uber and Airbnb?
Uber transportation is only available in certain cities; Airbnb properties can be
anywhere in the world
Uber is highly profitable; Airbnb is not.
Uber transportation is much less expensive than regular taxi service; Airbnb room
prices are similar to traditional hotel rooms
Uber sets prices for drivers; Airbnb lets property owners set prices themselves.
Going Deeper into Business Metrics
The “Sharpe Ratio” is:
A revenue metric
A risk metric
A risk metric divided by a revenue metric
A revenue metric divided by a risk metric
Actual CPC, divided by the conversion rate, is
the revenue metric:
Maximum Cost per Click-through
Which of the following as NOT a demographic for which one
can purchase targeted advertising?
Level of education
Location by zip code
Member of Vegetarian
Interest Group Facebook page
The metric referred to as an “organic link” tells
us that a visitor to our site came from:
An unpaid listing of our
website that was returned in a search result
Clicking on a link to our site in a blog post or
Directly typed in the url address of our site
A sponsored link
Some step in “search engine optimization” or SEO,
are: (check all that apply)
Make sure our content
is current, substantive and directly relevant
Increase links to our website from
all possible third-party websites
third-party websites with authoritative reputations and substantive
mention us and provide a link to our website
our “social signal” by increasing our
Facebook page “likes” and retweets
The Internal Rate of Return must be used to calculate
invested at several different times
There are several methods that can
be used, but a single method is preferred
It is necessary to compare two
different rates of return
It is necessary to annualize the
rate of return
In finance, it is useful to know both the return, and the
volatility of return, of an investment, because:
Higher volatility leads to higher returns.
Higher volatility leads to lower returns.
Volatility of returns is a measure of risk and
avoiding risk is a fundamental aim of investing.
Returns can always be increased through leverage (borrowing
money to make a portion of the investment) but this increases volatility, so
returns cannot be evaluated in isolation, absent knowledge of their
Why is relying upon the Life Time Value (LTV) of a customer
when determining web ad spending potentially risky?
Life Time Value is a
difficult metric to calculate accurately.
Life Time Value does not take into account the high negative
cash flow associated with initial customer acquisition; cash that it may take
years to recoup.
Life Time Value is a profitability metric, not a risk
Life Time Value is only useful if the CPC divided by the
conversion rate is less than the LTV.
In theory, an investor could generate any target return,
simply by borrowing money to make a portion of the investment, and investing in
an instrument that returns more than the risk-free rate. However, doing this would also:
Require a more skilled manager
Increase volatility of returns over the original instrument
at the same rate that it increases excess returns.
Inversely affect the discrete rate of return
None of the above
The “Expense Ratio” is a
profitability/efficiency metric – the money spent on operating a passive fund,
divided by the total market value of the fund assets.
expense associated with the fund is NOT included in the money spent operating
the fund in calculating the expense ratio?
Costs incurred in fighting shareholder lawsuits
against the fund managers
Brokerage fees the fund
pays to buy and sell assets
associated with marketing the fund
The manager’s performance bonus
If active fund managers picked their portfolios from
an Index “universe” at random,
weighted them by relative market capitalization, and held them for a given time
interval, what percentage of managers would be expected to out-perform the
Index return, before taking their fees into account?
Why is it considered undesirable for a fund
manager to have a large tracking error?
Tracking error is a kind of risk metric – it implies wide variation from the appropriate benchmark
Tracking errors are closely correlated with decreased profit
Tracking errors are the standard deviation of
None of the above
What is the most established metric for evaluating Venture
Capital and Private Equity Funds?
Internal Rate of Return (IRR)
Positive cash flow
Why would investors in hedge funds typically
want performance that has low correlation to the major equity markets?
They invest in many different types of assets, including options and derivatives
They are typically permitted to structure a deal so that they make money when a stock goes down in price
Investors like to see a strong linear trend in the log value of wealth in a fund.
Hedge fund investors typically also invest large amounts of capital in major equity markets, and target the highest possible risk-adjusted return on their combined portfolio.
On what measures are Mutual Fund Managers primarily
judged relative to their benchmark?
Excess return and tracking error
Maximum drawdown and tracking error
Linearity of log return and maximum drawdown
All of the above
Peer-graded Assignment: Articulating Business Metrics in a Business Case Study