AI Product Manager Test

You are a product manager at a B2B SaaS company that has recently transitioned to a product-led growth (PLG) strategy. The company has always had a strong focus on customer success and wants to ensure this continues under the new strategy. You have been asked to recommend a strategy that aligns customer success with the PLG approach. 

You have the following data:

1. The company's product has a free trial version with limited features.
2. The conversion rate from free trial to paid customers is 15%.
3. The churn rate for paid customers is 5%.
4. The average customer support ticket resolution time is 48 hours.
5. The Net Promoter Score (NPS) is 30.

Which of the following strategies would best align customer success with the PLG approach?

A: Increase the number of features in the free trial version to attract more users.
B: Decrease the price of the paid version to increase the conversion rate.
C: Improve the product's user experience and provide self-service resources to empower users.
D: Increase the customer support team size to reduce ticket resolution time and improve customer satisfaction.
E: Launch a referral program to improve the NPS and attract more users through word-of-mouth.

Your friend, Missy opened a new online store to sell heels. The heels come in 6 sizes: 34, 36, 38, 40, 42, 44. Missy did not want to invest too much capital upfront, so she decided to stock only 3 sizes: 36, 38 and 40 and display “out of stock” message for the remaining sizes. She used Google and Facebook ads to get visibility, and the market responded well. A lot of people ordered heels in the sizes she stocked, so she kept restocking the same sizes as they kept selling out.

She meets you over a cup of coffee and shares her story, and asks if you have any recommendations to increase conversion. What would you recommend?

A: Set up analytics and custom events on her online store to check how many people are clicking on the sizes she doesn’t have in stock.

B: Setting up analytics is not a good idea since it reduces website speed and impacts user experience.

C: Change CTA button to “Buy Now” to increase sales.

D: Procure a larger variety of heels in the same sizes that have been selling out.

E: It is possible that a different combination of heel sizes would increase conversion. 

F: Try a smaller stock of all the other sizes just to see if it sells.

G: Call up some of her customers to understand which sizes they are looking for and understand the market need.

H: Use FOMO (fear of missing out) to your advantage with messaging like “this item is in 43 carts”

I: Pick only 5 star reviews you have received and display on your store for each product to increase trust.

You are a product manager responsible for introducing a new product line of high-end headphones into the market. These headphones are designed for audiophiles and music enthusiasts who seek premium sound quality and craftsmanship. As part of your pricing strategy, you need to determine the most suitable pricing approach.

Which pricing approach would be most appropriate for this scenario?

You are a product manager at a tech company that has developed a new AI-powered photo editing app. The product is now in the growth stage of its lifecycle, with steadily increasing user numbers each month.

The marketing team has proposed two strategies:
1. Strategy A: Invest heavily in social media advertising to acquire new users.
2. Strategy B: Focus on improving SEO and content marketing to increase organic user acquisition.

Based on the product's lifecycle stage, which strategy should be prioritized and why?

A: Strategy A, because it is necessary to rapidly acquire new users during the growth stage.
B: Strategy B, because it is important to focus on organic user acquisition during the growth stage.
C: Strategy A, because social media advertising always leads to higher user acquisition.
D: Strategy B, because SEO and content marketing always lead to higher user acquisition.
E: The decision cannot be made without additional information.

Pink Village is the leading movie theatre in Singapore, and offers a wide variety of new and upcoming movie releases with varied cinematic experiences. Given the coronavirus pandemic, they need to implement safe distancing measures. They came to the conclusion that after every 2 seats in a row, 2 seats should be kept vacant. 

They need to alter the online booking experience accordingly, such that users should not be able to purchase an odd number of tickets. You are the product manager for the online ticketing system. What changes would you make?

A: Users should be able to purchase any number of tickets.

B: The “Buy Now” button should disappear if the user has selected an odd number of tickets. 

C: Users who select an odd number of seats should see an error pop-up when they click on the “Buy Now” button. 

D: When a user selects an odd number of tickets, they should see a message on the same screen notifying them of the restriction. 

E: If a user is trying to purchase 3 tickets, they should be charged for 4 tickets. 

F: This is an extremely confusing flow, we should temporarily halt online bookings, and only allow users to purchase tickets at the movie theatre.

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

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.

You are designing a data model for a healthcare system with the following requirements:

A: A separate table for each entity with foreign keys as specified, and a DoctorPatient table linking Doctors to Patients.
B: A separate table for each entity with foreign keys as specified, without additional tables.
C: A combined PatientDoctor table replacing Patient and Doctor, and separate tables for Appointment and Prescription.
D: A separate table for each entity with foreign keys, and a PatientPrescription table to track prescriptions directly linked to patients.
E: A single table combining Patient, Doctor, Appointment, and Prescription into one.
F: A separate table for each entity with foreign keys as specified, and an AppointmentDetails table linking Appointments to Prescriptions.

Look at the given ER diagram. What do you think is the least number of tables we would need to represent M, N, P, R1 and R2?

Consider a healthcare database with a table named PatientRecords that stores patient visit information. The table has the following attributes:

- VisitID
- PatientID
- PatientName
- DoctorID
- DoctorName
- VisitDate
- Diagnosis
- Treatment
- TreatmentCost

In this table:

- Each VisitID uniquely identifies a patient's visit and is associated with one PatientID.
- PatientID is associated with exactly one PatientName.
- Each DoctorID is associated with a unique DoctorName.
- TreatmentCost is a fixed cost based on the Treatment.

Evaluating the PatientRecords table, which of the following statements most accurately describes its normalization state and the required actions for higher normalization?

A: The table is in 1NF. To achieve 2NF, remove partial dependencies by separating Patient information (PatientID, PatientName) and Doctor information (DoctorID, DoctorName) into different tables.
B: The table is in 2NF. To achieve 3NF, remove transitive dependencies by creating separate tables for Patients (PatientID, PatientName), Doctors (DoctorID, DoctorName), and Visits (VisitID, PatientID, DoctorID, VisitDate, Diagnosis, Treatment, TreatmentCost).
C: The table is in 3NF. To achieve BCNF, adjust for functional dependencies such as moving DoctorName to a separate Doctors table.
D: The table is in 1NF. To achieve 3NF, create separate tables for Patients, Doctors, and Visits, and remove TreatmentCost as it is a derived attribute.
E: The table is in 2NF. To achieve 4NF, address any multi-valued dependencies by separating Visit details and Treatment details.
F: The table is in 3NF. To achieve 4NF, remove multi-valued dependencies related to VisitID.

Based on the ER diagram, which of the following statements is accurate and requires specific knowledge of the ER diagram's details?

A: A Student can major in multiple Departments.
B: An Instructor can belong to multiple Departments.
C: A Course can be offered by multiple Departments.
D: Enrollment records can link a Student to multiple Courses in a single semester.
E: Each Course must be associated with an Enrollment record.
F: A Department can offer courses without having any instructors.