A company that is trying to determine which "3" distinct target markets to focus its marketing efforts on might use which statistical tool?
A)ANOVA
B)multiple regression analysis
C)cluster analysis
D)bivariate regression

Question

Quizplus · Accepted Answer

Cluster analysis is a statistical tool that can be used to segment a population or customer base into distinct subgroups based on shared characteristics. In this case, a company could use cluster analysis to identify and group together customers who share similar demographics, behaviors, or preferences, and then choose to focus its marketing efforts on the three most promising clusters. ANOVA and bivariate regression are statistical tools used to test hypotheses and analyze relationships between variables, but they are not well-suited to identifying distinct target markets. Multiple regression analysis is useful for predicting the relationship between multiple variables, but it would not necessarily help the company identify or segment its target markets.

A Company That Is Trying to Determine Which "3" Distinct