2. Market Research & Analytics

Customer Segmentation — Quiz

Test your understanding of customer segmentation with 5 practice questions.

Practice Questions

Question 1

What is the weighted average customer lifetime value (CLV) for a company with three segments: Segment A (1000 customers, CLV \100), Segment B (2000 customers, CLV \50), and Segment C (500 customers, CLV \$200)?

Question 2

Which clustering validation metric evaluates segmentation quality by comparing intra-cluster cohesion with inter-cluster separation?

Question 3

Which statistical technique reduces dimensionality by transforming correlated segmentation variables into uncorrelated principal components?

Question 4

In an elbow method analysis, the sum of squared errors (SSE) for k clusters is: k=2:150, k=3:100, k=4:90, k=5:85. At which k is the 'elbow' indicating the optimal number of clusters?

Question 5

Which hierarchical clustering linkage method merges clusters to minimize the increase in within-cluster variance at each step?