An organization has a customer database of 3000 customers and has accumulated 5 years of sales dat
a. They want to make decisions about which products to retire and which to continue to offer. Management has turned to the analytics team to analyze the data and provide recommendations. The analytics team develops a survey to send to randomly selected customers. This is an example of:
Data sampling is the process of selecting a subset of data from a larger population to represent the characteristics of the whole population. Data sampling is often used when the population is too large or costly to collect data from every individual. Data sampling can help reduce the time, cost, and complexity of data analysis, while maintaining the validity and reliability of the results. Data sampling can also help avoid biases and errors that may arise from collecting data from the entire population. Data sampling can be done using various methods, such as random sampling, stratified sampling, cluster sampling, or convenience sampling, depending on the research objectives and the availability of data. In this example, the analytics team develops a survey to send to randomly selected customers, which is a form of data sampling. The survey aims to collect data from a representative sample of customers that can reflect the preferences and opinions of the entire customer population. The survey data can then be used to analyze the performance and demand of different products, and provide recommendations to management.Reference:
[Business Data Analytics: A Practitioner's Guide], Chapter 4: Data Analysis, Section 4.2: Data Sampling, pp. 69-72.
[A Guide to the Business Analysis Body of Knowledge (BABOK Guide)], Version 3, Chapter 6: Solution Evaluation, Section 6.2: Analyze Performance Measures, pp. 152-153.
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