Business Intelligence and Analytics Nptel Week 4 Answers
Are you looking for Nptel Business Intelligence and Analytics Week 4 Answers ? You are here at right place for assignment answers.
Table of Contents
Nptel Business Intelligence and Analytics Week 4 Answers (Jan-Apr 2025)
Course link: Click here
Q1. ____ refers to the process of identifying customers who are at risk of discontinuing their service subscription.
a) Customer retention
b) Customer survival
c) Customer churn
d) Customer attrition
Q2. What does the “half-life period” in customer behavior refer to?
a) The rate at which a business acquires new customers
b) The time it takes for a customer’s behavior to change
c) The period when customers no longer require any service
d) The time it takes for a customer segment to lose half of its customers
Q3. What is the formula for survival at time S(t) in customer churn analysis?
a) S(t) = 1 – h(t)
b) S(t) = S(t – 1) * h(t)
c) S(t) = S(t – 1) * (1 – h(t – 1))
d) S(t) = h(t) * (1 – S(t – 1))
Q4. How does hazard impact survival in the context of customer retention?
a) Survival increases when hazard decreases
b) Survival decreases when hazard increases
c) Hazard has no impact on survival
d) Hazard and survival are directly proportional
Q5. What is the purpose of calculating Customer Lifetime Value (CLV) at an individual customer level?
a) To analyze the overall revenue trends of a customer over the course of a year
b) To assess the financial value of a customer over their lifetime to the firm
c) To estimate the total revenue generated by a customer over time
d) To evaluate the contribution of a customer to long-term profitability
Q6. The calculation of Customer Lifetime Value (CLV) primarily depends on:
a) Historical data and past customer behavior
b) Projected sales data for the next year
c) Competitor data and market trends
d) Customer feedback and survey data
Q7. Which following factor is used in the CLV formula to adjust the probability of a customer remaining active over time?
a) Customer loyalty rate
b) Interest rate
c) Survival rate
d) Acquisition cost
Q8. In January 2024, an online magazine platform in India with 100,000 active subscribers experienced 7,500 cancellations. The platform identifies 18,000 subscribers at risk of canceling due to lower engagement with the content and recent pricing changes. What is the hazard probability of a subscriber canceling their subscription?
a) 0.35
b) 0.42
c) 0.28
d) 0.58
Q9. In customer analytics, which of the following best defines Churn Rate?
a) The percentage of customers who upgrade their service
b) The rate of customers who cancel their subscriptions during a given period
c) The rate at which new customers are acquired
d) The percentage of customers who renew their subscriptions
Q10. How does survival analysis help in customer retention?
a) By predicting the future value of a customer
b) By understanding when a customer is likely to leave or migrate to a new segment
c) By determining the exact revenue a customer generates
d) By forecasting the product preferences of customers
Q11. The area under a customer retention curve represents the average customer lifetime for the period of time in the curve.
a) True
b) False
Q12. Which of the following best describes a bathtub-shaped hazard function?
a) A function that exhibits a constant rate of increase or decrease over time.
b) A function that initially increases, then levels off, and finally declines.
c) A function that starts high, declines, and then increases again.
d) A function that fluctuates randomly without a clear trend.
Q13. If a customer has survived until time t, what does the hazard probability at time t describe?
a) The likelihood that the customer will make a purchase between time t and t+1
b) The risk of the customer leaving before time t+1
c) The total number of customers remaining at time t+1
d) The likelihood of the customer upgrading to a new product at time t+1
Q14. Which of the following statements is true about the population at risk in the context of survival analysis?
a) The population at risk includes only those customers who have left by time t
b) The population at risk includes all customers who have been active up until time t
c) The population at risk includes customers whose tenure is greater than or equal to t, even if they stopped at time t
d) The population at risk excludes customers who stopped before time t
Q15. Which of the following is a key characteristic of a survival curve compared to a retention curve?
a) The survival curve increases or stays flat over time.
b) The survival curve is smoother and always decreases, even if it flattens at times.
c) The survival curve shows fluctuations, just like the retention curve.
d) The survival curve is based on the number of customers retained at each time point.
Nptel Business Intelligence & Analytics Week 4 Answers (Jan-Apr 2025)
For answers or latest updates join our telegram channel: Click here to join
These are Nptel Business Intelligence & Analytics Week 3 Answers
More Answers of Nptel Business Intelligence & Analytics: Click here
For answers to additional Nptel courses, please refer to this link: NPTEL Assignment
