CBDA practice question 8 of 25

The marketing department for a major restaurant chain is interested in testing a Kids Eat Free campaign to determine if it will help to increase…

The marketing department for a major restaurant chain is interested in testing a Kids Eat Free campaign to determine if it will help to increase sales. They are interested in piloting the campaign to determine which day of the week will improve sales the most. The campaign is launched across 7 cities with each city promoting a different day of the week. The sales data is collected and provided to a team for analysis. What concern might the analytics team have regarding data quality across cities?

Answer options

A: Normality

B: Heteroskedacity

C: Linearity

D: Variation Correct answer

Correct Answer:

D. Variation

Explanation

Variation is the degree to which the data values differ from each other or from a central tendency measure, such as the mean or median. Variation can affect the data quality across cities, as it can indicate the presence of outliers, errors, noise, or inconsistency in the data collection or processing methods. Variation can also influence the statistical analysis and interpretation of the results, as it can affect the significance, confidence, and validity of the findings12. Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 302: Statistics for Business and Economics, David R. Anderson et al., 2014, p. 83.

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