Sampson Inc. is a producer of plastic products including bottles and sandwich bags. Management decided they need to be pre-informed about the financial performance of the organization and will utilize data analytics. As part of their predictive analytics, they are going to use association rules. Which of the following is a potential outcome of using this method?
A) Building a replenishment plan to decide when to send supply to each vendor to adequately meet their demand
B) Determination of a region's demographics to predict vendor product needs
C) Determination of overtime needed to generate detailed schedules
D) Upselling products from one customer group to another customer group

Question

Quizplus · Accepted Answer

This question requires familiarity with data analytics and more specifically the methodology of predictive analytics. Choice B is correct as it accurately describes a potential outcome under association rules. If Sampson uses association rules to determine what vendors will need based upon their region's demographics, then they will be able to better plan their own production. The remaining choices are incorrect since they are ineffective uses of analytics, and they will not produce useful predictions or they contain outcomes not related to predictive analytics.