MAC Data Analysis & Decision Making 2 — Questions and Answers
Question 1: A marketing analyst notices that two variables have a Pearson correlation coefficient of 0.85. What does this indicate?
- A strong positive linear relationship between the two variables (Correct answer)
- One variable directly causes changes in the other
- The variables share 85% of the same data points
- The relationship is statistically significant at p < 0.05
Correct answer: A strong positive linear relationship between the two variables
A Pearson correlation of 0.85 indicates a strong positive linear relationship, but correlation does not imply causation.
Question 2: Which metric best measures the incremental revenue generated per dollar spent on marketing?
- Customer Acquisition Cost (CAC)
- Return on Ad Spend (ROAS) (Correct answer)
- Net Promoter Score (NPS)
- Cost Per Mille (CPM)
Correct answer: Return on Ad Spend (ROAS)
ROAS measures revenue generated for every dollar spent on advertising, making it the primary incremental efficiency metric.
Question 3: When segmenting customers using RFM analysis, what does the 'F' stand for?
- Frequency (Correct answer)
- Funneling
- Forecasting
- Fulfillment
Correct answer: Frequency
RFM stands for Recency, Frequency, and Monetary value — three dimensions used to rank customers.
Question 4: A company wants to reduce churn. Which analytical approach would best identify customers at risk of leaving?
- Cohort analysis comparing monthly revenue
- Predictive modeling using behavioral engagement signals (Correct answer)
- A/B testing homepage layouts
- Benchmarking against industry average churn rates
Correct answer: Predictive modeling using behavioral engagement signals
Predictive modeling uses historical behavioral patterns to score and flag customers most likely to churn before they do.
Question 5: In a marketing funnel analysis, a sudden drop in conversion rate between the consideration and decision stages most likely warrants:
- Increasing top-of-funnel ad spend
- Investigating barriers such as pricing, trust signals, or UX friction at the decision stage (Correct answer)
- Pausing all campaigns until the issue resolves itself
- Expanding the target audience to improve sample size
Correct answer: Investigating barriers such as pricing, trust signals, or UX friction at the decision stage
A stage-specific drop signals a friction point at that stage, which should be investigated and addressed directly.
Question 6: What is the primary purpose of using a control group in marketing experiments?
- To increase the total sample size of the experiment
- To isolate the causal effect of the marketing intervention being tested (Correct answer)
- To ensure all audience segments are exposed to the new treatment
- To reduce the cost of running the campaign
Correct answer: To isolate the causal effect of the marketing intervention being tested
A control group provides a baseline, allowing analysts to attribute outcome differences specifically to the tested intervention.
Question 7: An analyst presents a bar chart where the y-axis starts at 80 instead of 0. What concern does this raise?
- The chart will be too difficult for stakeholders to read
- It may visually exaggerate differences between groups and mislead decision makers (Correct answer)
- Bar charts always require a zero baseline by law
- Starting above zero improves chart accuracy
Correct answer: It may visually exaggerate differences between groups and mislead decision makers
Truncating the y-axis amplifies visual differences that are proportionally small, which can mislead decision makers.
MAC Data Analysis & Decision Making 2
A marketing analyst notices that two variables have a Pearson correlation coefficient of 0.85.
What does this indicate?