INTRO TO DATA ANALYTICS D491
EXAM QUESTIONS WITH CORRECT
ANSWERS
Examples of ML objects products - ANSWER-driverless cars (Tesla, Volvo),
medicine (find cancer), detect fraud (PayPal, Amazon, Home Depot), MT Everest
Weather, Missing Children based on Facial Recognition, Alexa/Cortana/Siri,
Facebook ads, Zillow home prices
There are two main types of ML models: machine learning ____________(where the
response belongs to a set of classes) and machine learning __________(where the
response is continuous). - ANSWER-classification, regression
optimization - ANSWER-the process of finding the best solution to a problem or
maximizing or minimizing an objective function, subject to constraints
conversion rate - ANSWER-a metric that measures the percentage of website
visitors who complete a desired action, such as purchasing or filling out a form
If an ecommerce site receives 200 visitors in a month and has 50 sales, the
__________ _____ would be 50 divided by 200, or 25%. A _________can refer to
any desired action that you want the user to take. - ANSWER-Conversion rate,
conversion
Signing up for emails. Filling out a contact form. Visiting certain pages on your
website. - All examples of a _______________ _____ - ANSWER-Conversion Rate
If 1000 people visit the website and 50 people make a purchase, the conversion rate
would be ?/? = (?: decimal value) or ?%. - ANSWER-50/1000, .05, 5%, conversion
rates are really just finding the desired outcome by part/whole = percentage of what
you're looking for (the part being subject to change and the whole being the total
amount)
If an email was sent to 200 people and 40 people clicked on the link, the conversion
rate would be? - ANSWER-40/200, 0.2, 20%
If an ad is viewed 500 times and it gets 75 clicks, the conversion rate would be? -
ANSWER-75/500 = 0.15 or 15%.
click-through rate (CTR) - ANSWER-a metric that measures the percentage of
people who click on a link or advertisement
customer lifetime value (CLV) - ANSWER-a metric that measures the total value of a
customer to a business throughout their relationship
,Subscription Services: A customer subscribes to a streaming service like Netflix for
$10/month. If the average customer stays subscribed for 3 years. How much is the
CLV? - ANSWER-the CLV would be $10 * 12 months/year * 3 years = $360.
Telecommunications: A customer signs up for a 2-year contract with a mobile phone
company. The monthly bill is $50, and the customer also purchases a $200 phone.
What would the CLV be? - ANSWER-The CLV would be ($50 * 24 months) + $200 =
$1400.
Find the CLV: A customer shops at an online store and makes an average purchase
of $30, five times a year, for ten years. - ANSWER-The CLV would be $30 * 5
times/year * 10 years = $1500.
E-Commerce: Customer Lifetime Value is a ___________ of the net profit attributed
to the entire future relationship with a customer. It helps businesses make decisions
about how much money to invest in acquiring new customers and retaining existing
ones. - ANSWER-prediction
Find the CLV: Telecommunications with Churn Rate: A customer signs up for a 2-
year contract with a mobile phone company. The monthly bill is $70, and the
customer also purchases a $300 phone. However, the company has a yearly churn
rate of 20%. - ANSWER-This means that each year, they lose 20% of their
customers. The CLV would be [($70 * 12 months + $300) * (1 - 0.20)] = $1,056 for
the first year. If the customer stays for the second year, the CLV would be $1,056 +
[($70 * 12 months) * (1 - 0.20)] = $1,812.
A ________churn rate is typically better for a business; it means they are retaining
more of their customers. However, some amount of churn is normal and expected in
most businesses. - ANSWER-lower
Streaming Services: A streaming service like Netflix might have a monthly churn rate
of 2%. - What does this mean? - ANSWER-Out of their total subscribers, 2% cancel
their subscription each month.
churn rate: - ANSWER-a metric that measures the percentage of customers who
stop doing business with a company over a certain period
10% end their service or switch to a different provider each year. - How much is the
rate of the service ending for those who switch, what is this end of service reffered to
as? - ANSWER-10% Churn rate - typically seen as loss of customers.
Subscription Boxes: A monthly subscription box service might have a quarterly churn
rate of 5%. - what does this mean? - ANSWER-This means that every quarter, 5% of
their customers decide to stop receiving the boxes.
customer acquisition cost (CAC): - ANSWER-a metric that measures the cost of
acquiring a new customer
Machine Learning Startup: A machine learning startup spends $5000 on marketing
per month and acquires 50 new customers. - What's the CAC - ANSWER-The CAC
, would be $5000/50 = $100 per customer. This cost includes the marketing spend
and the operational costs of the data science team to develop and maintain the
machine learning models that drive the product.
Data Analytics Service: A data analytics service spends $2000 on a marketing
campaign. They also pay a sales team $5000 in salaries and commissions. If they
acquire 20 new customers - ANSWER-The CAC would be ($2000 + $5000)/20 =
$350 per customer. This includes the marketing spend, sales team compensation,
and the costs of the data science team to provide the analytics service.
AI-Powered Health App: An AI-powered health app spends $10,000 on a marketing
campaign and $5000 maintaining the app, including updating the AI models. If they
acquire 200 new customers - how much would the CAC be? - ANSWER-the CAC
would be ($10,000 + $5000)/200 = $75 per customer. This includes the marketing
spend and the costs of the data science team to keep the AI models up-to-date and
effective.
Calculating CAC can be much more complex and may take into account other
______ like overhead costs, technology costs, and more. The goal for any business
is to have a CAC that is significantly __________ than the Customer Lifetime Value
(CLV), as this means that the business is profitable. - ANSWER-factors, profitable
return on investment (ROI): - ANSWER-a metric that measures an investment's
profitability
bounce rate: - ANSWER-a metric that measures the percentage of website visitors
who leave after viewing only one page.
time on site: - ANSWER-a metric that measures a user's time on a website
engagement rate: - ANSWER-a metric that measures the level of engagement with
content or advertisements, such as likes, comments, and shares on social media
revenue growth: - ANSWER-a metric that measures the increase in revenue over a
specific period
___ has many applications in diverse fields such as face recognition, computer
vision, image compression, bioinformatics, and fraud detection. - ANSWER-PCA
Density Clustering - ANSWER-detecting areas where points are concentrated and
where they are separated by areas that are empty or sparse.
Data Wrangling is - ANSWER-the process of removing errors and combining
complex data sets to make them more accessible and easier to analyze.
Data Wrangling Examples - ANSWER-Merging several data sources into one data-
set for analysis.
Identifying gaps or empty cells in data and either filling or removing them.
Deleting irrelevant or unnecessary data.
EXAM QUESTIONS WITH CORRECT
ANSWERS
Examples of ML objects products - ANSWER-driverless cars (Tesla, Volvo),
medicine (find cancer), detect fraud (PayPal, Amazon, Home Depot), MT Everest
Weather, Missing Children based on Facial Recognition, Alexa/Cortana/Siri,
Facebook ads, Zillow home prices
There are two main types of ML models: machine learning ____________(where the
response belongs to a set of classes) and machine learning __________(where the
response is continuous). - ANSWER-classification, regression
optimization - ANSWER-the process of finding the best solution to a problem or
maximizing or minimizing an objective function, subject to constraints
conversion rate - ANSWER-a metric that measures the percentage of website
visitors who complete a desired action, such as purchasing or filling out a form
If an ecommerce site receives 200 visitors in a month and has 50 sales, the
__________ _____ would be 50 divided by 200, or 25%. A _________can refer to
any desired action that you want the user to take. - ANSWER-Conversion rate,
conversion
Signing up for emails. Filling out a contact form. Visiting certain pages on your
website. - All examples of a _______________ _____ - ANSWER-Conversion Rate
If 1000 people visit the website and 50 people make a purchase, the conversion rate
would be ?/? = (?: decimal value) or ?%. - ANSWER-50/1000, .05, 5%, conversion
rates are really just finding the desired outcome by part/whole = percentage of what
you're looking for (the part being subject to change and the whole being the total
amount)
If an email was sent to 200 people and 40 people clicked on the link, the conversion
rate would be? - ANSWER-40/200, 0.2, 20%
If an ad is viewed 500 times and it gets 75 clicks, the conversion rate would be? -
ANSWER-75/500 = 0.15 or 15%.
click-through rate (CTR) - ANSWER-a metric that measures the percentage of
people who click on a link or advertisement
customer lifetime value (CLV) - ANSWER-a metric that measures the total value of a
customer to a business throughout their relationship
,Subscription Services: A customer subscribes to a streaming service like Netflix for
$10/month. If the average customer stays subscribed for 3 years. How much is the
CLV? - ANSWER-the CLV would be $10 * 12 months/year * 3 years = $360.
Telecommunications: A customer signs up for a 2-year contract with a mobile phone
company. The monthly bill is $50, and the customer also purchases a $200 phone.
What would the CLV be? - ANSWER-The CLV would be ($50 * 24 months) + $200 =
$1400.
Find the CLV: A customer shops at an online store and makes an average purchase
of $30, five times a year, for ten years. - ANSWER-The CLV would be $30 * 5
times/year * 10 years = $1500.
E-Commerce: Customer Lifetime Value is a ___________ of the net profit attributed
to the entire future relationship with a customer. It helps businesses make decisions
about how much money to invest in acquiring new customers and retaining existing
ones. - ANSWER-prediction
Find the CLV: Telecommunications with Churn Rate: A customer signs up for a 2-
year contract with a mobile phone company. The monthly bill is $70, and the
customer also purchases a $300 phone. However, the company has a yearly churn
rate of 20%. - ANSWER-This means that each year, they lose 20% of their
customers. The CLV would be [($70 * 12 months + $300) * (1 - 0.20)] = $1,056 for
the first year. If the customer stays for the second year, the CLV would be $1,056 +
[($70 * 12 months) * (1 - 0.20)] = $1,812.
A ________churn rate is typically better for a business; it means they are retaining
more of their customers. However, some amount of churn is normal and expected in
most businesses. - ANSWER-lower
Streaming Services: A streaming service like Netflix might have a monthly churn rate
of 2%. - What does this mean? - ANSWER-Out of their total subscribers, 2% cancel
their subscription each month.
churn rate: - ANSWER-a metric that measures the percentage of customers who
stop doing business with a company over a certain period
10% end their service or switch to a different provider each year. - How much is the
rate of the service ending for those who switch, what is this end of service reffered to
as? - ANSWER-10% Churn rate - typically seen as loss of customers.
Subscription Boxes: A monthly subscription box service might have a quarterly churn
rate of 5%. - what does this mean? - ANSWER-This means that every quarter, 5% of
their customers decide to stop receiving the boxes.
customer acquisition cost (CAC): - ANSWER-a metric that measures the cost of
acquiring a new customer
Machine Learning Startup: A machine learning startup spends $5000 on marketing
per month and acquires 50 new customers. - What's the CAC - ANSWER-The CAC
, would be $5000/50 = $100 per customer. This cost includes the marketing spend
and the operational costs of the data science team to develop and maintain the
machine learning models that drive the product.
Data Analytics Service: A data analytics service spends $2000 on a marketing
campaign. They also pay a sales team $5000 in salaries and commissions. If they
acquire 20 new customers - ANSWER-The CAC would be ($2000 + $5000)/20 =
$350 per customer. This includes the marketing spend, sales team compensation,
and the costs of the data science team to provide the analytics service.
AI-Powered Health App: An AI-powered health app spends $10,000 on a marketing
campaign and $5000 maintaining the app, including updating the AI models. If they
acquire 200 new customers - how much would the CAC be? - ANSWER-the CAC
would be ($10,000 + $5000)/200 = $75 per customer. This includes the marketing
spend and the costs of the data science team to keep the AI models up-to-date and
effective.
Calculating CAC can be much more complex and may take into account other
______ like overhead costs, technology costs, and more. The goal for any business
is to have a CAC that is significantly __________ than the Customer Lifetime Value
(CLV), as this means that the business is profitable. - ANSWER-factors, profitable
return on investment (ROI): - ANSWER-a metric that measures an investment's
profitability
bounce rate: - ANSWER-a metric that measures the percentage of website visitors
who leave after viewing only one page.
time on site: - ANSWER-a metric that measures a user's time on a website
engagement rate: - ANSWER-a metric that measures the level of engagement with
content or advertisements, such as likes, comments, and shares on social media
revenue growth: - ANSWER-a metric that measures the increase in revenue over a
specific period
___ has many applications in diverse fields such as face recognition, computer
vision, image compression, bioinformatics, and fraud detection. - ANSWER-PCA
Density Clustering - ANSWER-detecting areas where points are concentrated and
where they are separated by areas that are empty or sparse.
Data Wrangling is - ANSWER-the process of removing errors and combining
complex data sets to make them more accessible and easier to analyze.
Data Wrangling Examples - ANSWER-Merging several data sources into one data-
set for analysis.
Identifying gaps or empty cells in data and either filling or removing them.
Deleting irrelevant or unnecessary data.
