a) Strategy B exhibits stochastic (probabilistic) dominance over Strategy A.
b) Strategy B has the same downside risk as Strategy A since the curves have the same shape.
c) Strategy B must have the same uncertainties impacting it as Strategy A because the curves
are so similar in shape.
d) Strategy A exhibits stochastic (probabilistic) dominance over strategy B.
22. Each month you generate a list of marketing leads for direct mail campaigns. Which of the following
should you do before the list is used?
a) Exclude people who were on the list the previous month.
b) Retain x% of the leads as control for performance measurement.
c) Remove opt-outs.
d) Exclude people who were never on the list.
23. When analyzing responses of a survey of why people like a certain restaurant, factor analysis could
reduce the dimension in which of the following ways?
a) Collapse several survey questions regarding food taste, health value, ingredients and
consistency into one general unobserved “food quality” variable.
b) Condense similar survey respondent answers into clusters of like-minded customers
for market segment analysis.
c) Reduce the variability of individual subject ratings by centering each respondent’s
ratings around his or her average rating.
d) Decrease variability by analyzing inter-rater reliability on the question items before
offering the survey to a wide number of respondents.
24. A preferred method or best practice for organizing data in a data warehouse for reporting and
analysis is:
a) transactional-based modeling.
b) multidimensional modeling.
c) relation-based modeling.
d) tuple-based modeling.
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