Data Analytics & Visualization Flashcards
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Read the first 7 Data Analytics & Visualization flashcards as text
A cigar shop owner wants to forecast next month's sales using the previous 12 months of data. Which analytical approach is most appropriate?
Answer: Time-series forecasting
Time-series forecasting uses historical sequential data to project future values, making it ideal for monthly sales prediction.
Which data source would be most valuable when benchmarking a tobacco shop's performance against industry averages?
Answer: Trade association reports and industry publications
Trade association reports provide industry-wide benchmarks that allow a retailer to compare their metrics against peers.
A retailer segments customers into 'casual,' 'regular,' and 'enthusiast' groups based on purchase frequency. What is this analytical process called?
Answer: Customer segmentation
Customer segmentation divides a customer base into distinct groups with shared characteristics to enable targeted marketing and service.
What does a waterfall chart help a tobacconist manager visualize?
Answer: How individual factors (like discounts or returns) contribute to net revenue change
A waterfall chart breaks down a cumulative result into its positive and negative contributing components, ideal for revenue bridge analysis.
In a tobacco retail context, what does a low inventory turnover ratio typically signal?
Answer: Stock is sitting on shelves too long, potentially tying up capital
Low inventory turnover means products move slowly, which can indicate overstocking, stale assortment, or weak demand.
Which chart type would best show each tobacco product category's share of total annual revenue?
Answer: Pie or donut chart
Pie and donut charts are designed to show part-to-whole relationships, making them ideal for visualizing revenue share by category.
A tobacconist's data shows that customers who buy pipe tobacco also frequently purchase pipe accessories. What type of analysis revealed this insight?
Answer: Market basket (association) analysis
Market basket analysis identifies products frequently purchased together, enabling cross-sell recommendations and bundling strategies.
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