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Question 14

The marketing department for a major restaurant chain is interested in testing a Kids Eat Free campaign to determine if it will help to increase sales. They are interested in piloting the campaign to determine which day of the week will improve sales the most. The campaign is launched across 7 cities with each city promoting a different day of the week. The sales data is collected and provided to a team for analysis.

What concern might the analytics team have regarding data quality across cities?

    Correct Answer: A

    When testing a promotional campaign across different cities, the primary concern for the analytics team would be the variation in data. Different cities may have different customer demographics, economic conditions, and levels of engagement with the restaurant chain, all of which can lead to significant variations in sales data. This variability can make it challenging to attribute differences in sales to the specific days of the Kids Eat Free campaign versus other external factors. Ensuring consistent data quality and accounting for these variations is crucial for accurate analysis.

Discussion
RabbitsfootOption: D

See CBDA guide pg 152 - Heteroskedasticity refers to having error residuals that do not have a constant variance. It indicates that the data behaves differently across different ranges of values.