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Here are some sample Business Analysis questions from our premium questions library (10273 non-googleable questions).

### Skills

#### Accounting

🧐 Question

Medium

PV of customer segments
Market Segmentation
ROI
CLV
Solve
```A retail company is exploring new customer segments to increase sales. You are provided with the following data on three potential customer segments:

Segment A:

- Average annual revenue per customer: \$500
- Average customer retention rate: 80%
- Average customer acquisition cost: \$200
- Expected segment size: 2,000 customers

Segment B:

- Average annual revenue per customer: \$750
- Average customer retention rate: 70%
- Average customer acquisition cost: \$300
- Expected segment size: 1,500 customers

Segment C:

- Average annual revenue per customer: \$1,000
- Average customer retention rate: 60%
- Average customer acquisition cost: \$400
- Expected segment size: 1,000 customers```
```Assuming a 10% discount rate, which customer segment should the company target to maximize the return on investment? A target customer segment would have higher customer lifetime value (CLV). Note that CLV is calculated by using the following formula:

CLV = (Average Annual Revenue per Customer * Gross Margin %) * (Retention Rate / (1 + Discount Rate - Retention Rate)) - Customer Acquisition Cost```

Easy

Supply Chain Management
Cost Reduction
Solve
```A company is considering two options to optimize its supply chain and reduce costs. The following data has been provided for each option:

Option Alpha:

- Annual transportation cost reduction: \$300,000
- Annual inventory carrying cost increase: \$250,000
- One-time implementation cost: \$100,000

Option Beta:

- Annual transportation cost reduction: \$200,000
- Annual inventory carrying cost increase: \$150,000
- One-time implementation cost: \$50,000

As a business analyst, determine which option provides a higher net cost reduction over a 3-year period.```
```A: Option Alpha provides a higher net cost reduction.
B: Option Beta provides a higher net cost reduction.
C: Both options provide the same net cost reduction.
D: Neither option provides a net cost reduction.
E: The net cost reduction cannot be determined with the given data.```
🧐 Question🔧 Skill

Medium

PV of customer segments
Market Segmentation
ROI
CLV
3 mins
Solve

Easy

Supply Chain Management
Cost Reduction
2 mins
Solve
🧐 Question🔧 Skill💪 Difficulty⌛ Time
PV of customer segments
Market Segmentation
ROI
CLV
Medium3 mins
Solve
Supply Chain Management
Cost Reduction
Easy2 mins
Solve

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