Practice Test Geeks(CAM) Certified Account Manager Practice Test
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Data Analysis & Decision Making Flashcards

7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Data Analysis & Decision Making flashcards as text

  1. A CAM reviewing net revenue retention (NRR) of 115% should interpret this as:

    Answer: Existing customers generated 15% more revenue than the prior period through expansion

    NRR above 100% means that expansions, upsells, and renewals from existing customers outpaced any revenue lost to churn or contraction.

  2. A CAM must decide between two renewal strategies. Strategy A has a 70% chance of a $100K renewal, and Strategy B has a 40% chance of a $200K renewal. Using expected value, which is better?

    Answer: Strategy B, because $80K expected value exceeds Strategy A's $70K

    Expected value = probability × outcome; Strategy A = $70K and Strategy B = $80K, making Strategy B the better choice by expected value.

  3. A customer's product usage data shows a sharp drop for two weeks followed by a return to normal. A CAM should:

    Answer: Investigate whether the drop coincides with a holiday, migration, or known outage before acting

    Anomalous data should be contextualized before triggering action; temporary drops often have benign explanations that don't indicate churn risk.

  4. Which of the following is an example of a lagging indicator in account management?

    Answer: Customer satisfaction score from last quarter's survey

    Lagging indicators reflect past performance; last quarter's satisfaction score is a historical measure, not a real-time or predictive signal.

  5. A CAM wants to segment a portfolio of 200 accounts by risk level. The MOST data-driven approach is to:

    Answer: Use a multi-variable health score model weighted by churn predictors

    A multi-variable health score incorporating validated churn predictors provides the most objective and predictive segmentation of account risk.

  6. During data analysis, a CAM discovers a strong correlation between onboarding session attendance and 12-month retention. The CAM should be careful NOT to:

    Answer: Assume that onboarding attendance causes higher retention without further analysis

    Correlation does not imply causation; customers who attend onboarding may already be more engaged, so further analysis is needed before treating attendance as a lever.

  7. A CAM is asked to calculate the payback period for a customer who paid $60,000 annually and generates $5,000 in gross profit per month. The payback period is:

    Answer: 12 months

    Payback period = investment ÷ monthly profit = $60,000 ÷ $5,000 = 12 months.