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Adaface Sample Business Analysis Questions

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

Skills

🧐 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

Business Analysis
Solve

Easy

Supply Chain Management
Cost Reduction

2 mins

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

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