Podcast
Questions and Answers
The correlation coefficient between the purchase of milk and apples is positive.
The correlation coefficient between the purchase of milk and apples is positive.
True
The market basket analysis suggests that buying bananas is a strong predictor of buying apples.
The market basket analysis suggests that buying bananas is a strong predictor of buying apples.
False
Study Notes
Market Basket Analysis
- Market basket analysis helps shops adjust their store layout and catalog by identifying which groups of customers are inclined towards certain products.
- It plays a crucial role in various areas, including:
- Customer analytics
- Product clustering
- Catalog design
- Store layout
Understanding Consumer Behavior
- Market basket analysis helps determine the likelihood of consumers buying certain products together.
- For example, a customer who buys milk is more likely to buy cheese and apples in the same transaction than someone who does not buy milk.
- This analysis helps shops understand consumer behavior and optimize their product placement accordingly.
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Description
Test your understanding of market basket analysis, a technique used to identify customer behavior and optimize store layout and catalog design.
