DA Business Intelligence and KPIs 2 — Questions and Answers
Question 1: What does MoM stand for in business analytics?
- Method of Measurement
- Month-over-Month (Correct answer)
- Margin on Merchandise
- Mode of Market
Correct answer: Month-over-Month
MoM (Month-over-Month) is a growth metric comparing a value in one month to the value in the previous month.
Question 2: What is a cohort analysis?
- Segmenting customers by product category
- Tracking behavior of groups sharing a common characteristic over time (Correct answer)
- Comparing sales across multiple regions
- Ranking products by profitability
Correct answer: Tracking behavior of groups sharing a common characteristic over time
Cohort analysis groups users by a shared attribute (e.g., sign-up month) and tracks their behavior over time to reveal retention and engagement patterns.
Question 3: What is the difference between revenue and profit?
- Revenue is after expenses; profit is before
- Revenue is total income; profit is revenue minus costs (Correct answer)
- They are the same metric
- Profit is only used in non-profit organizations
Correct answer: Revenue is total income; profit is revenue minus costs
Revenue is total income generated from sales, while profit is what remains after all costs and expenses are deducted.
Question 4: What does ARPU stand for?
- Annual Revenue Per User
- Average Revenue Per Unit
- Average Revenue Per User (Correct answer)
- Adjusted Return on Purchase Units
Correct answer: Average Revenue Per User
ARPU (Average Revenue Per User) measures how much revenue a business earns on average from each user over a given period.
Question 5: In BI, what is a 'drill-down'?
- Exporting a report to PDF
- Navigating from a summary level to more detailed underlying data (Correct answer)
- Applying a date filter to a chart
- Merging two reports together
Correct answer: Navigating from a summary level to more detailed underlying data
Drill-down allows users to move from a high-level summary (e.g., annual sales) to more granular data (e.g., monthly or daily breakdown).
Question 6: What is customer acquisition cost (CAC)?
- The lifetime value of a customer
- The average order value
- The total cost to acquire one new customer (Correct answer)
- The number of marketing channels used
Correct answer: The total cost to acquire one new customer
CAC is calculated by dividing total marketing and sales spend by the number of new customers acquired in that period.
DA Business Intelligence and KPIs 2
What does MoM stand for in business analytics?