GMC Data Analysis & Decision Making 2 — Questions and Answers
Question 1: A growth team notices their conversion rate dropped 15% after a website redesign. Which analysis method best isolates the redesign as the cause?
- Cohort analysis
- A/B test with a control group (Correct answer)
- Funnel analysis
- Attribution modeling
Correct answer: A/B test with a control group
An A/B test with a control group isolates the redesign's impact by comparing it against the original version under identical conditions.
Question 2: Which metric would MOST directly indicate that a growth experiment improved long-term business value rather than just short-term conversions?
- Click-through rate
- Cost per acquisition
- Customer lifetime value (LTV) (Correct answer)
- Bounce rate
Correct answer: Customer lifetime value (LTV)
LTV captures the total revenue a customer generates over their relationship with the business, reflecting true long-term value.
Question 3: When analyzing a marketing funnel, you find a 70% drop-off between 'Add to Cart' and 'Checkout.' What is the most appropriate next step?
- Increase ad spend to drive more top-of-funnel traffic
- Segment users who dropped off and analyze their behavior patterns (Correct answer)
- Immediately redesign the checkout page
- Remove the add-to-cart step entirely
Correct answer: Segment users who dropped off and analyze their behavior patterns
Segmenting drop-off users and analyzing their behavior reveals why they left, enabling targeted and evidence-based fixes.
Question 4: A/B test results show a p-value of 0.08. How should a growth marketer interpret this?
- The result is statistically significant at the 95% confidence level
- There is an 8% chance the control version is better
- The result does not meet the standard 95% confidence threshold (Correct answer)
- The test should be stopped immediately
Correct answer: The result does not meet the standard 95% confidence threshold
A p-value of 0.08 exceeds the conventional 0.05 threshold, meaning the result falls short of 95% statistical significance.
Question 5: Which data visualization is BEST suited for showing how users move through sequential stages of an onboarding flow?
- Pie chart
- Scatter plot
- Funnel chart (Correct answer)
- Histogram
Correct answer: Funnel chart
Funnel charts visually represent the progressive drop-off between sequential stages, making them ideal for onboarding flow analysis.
Question 6: A growth marketer wants to understand whether users who complete onboarding in under 5 minutes retain better at 30 days. Which analysis technique is most appropriate?
- Attribution analysis
- Cohort analysis segmented by onboarding time (Correct answer)
- Heatmap analysis
- Share of voice analysis
Correct answer: Cohort analysis segmented by onboarding time
Cohort analysis groups users by a shared characteristic (onboarding time) and tracks their behavior over time, directly answering the retention question.
Question 7: In growth analytics, what does 'North Star Metric' mean?
- The metric with the highest absolute value in your dashboard
- A single metric that best captures the core value delivered to customers and predicts long-term growth (Correct answer)
- The metric used exclusively for paid acquisition reporting
- The average of all KPIs across departments
Correct answer: A single metric that best captures the core value delivered to customers and predicts long-term growth
The North Star Metric is a single, unifying measure of customer value that aligns teams and predicts sustainable growth.
A growth team notices their conversion rate dropped 15% after a website redesign.
Which analysis method best isolates the redesign as the cause?