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BA Quiz 3

The document consists of a quiz on Market Basket Analysis, covering concepts like support, confidence, and lift through multiple-choice and short-answer questions. It includes a case study involving an online retail company, ShopNow, which aims to analyze customer purchasing behavior to enhance product recommendations. The quiz also requires calculations based on transaction data to derive insights for improving sales strategies.

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5 views3 pages

BA Quiz 3

The document consists of a quiz on Market Basket Analysis, covering concepts like support, confidence, and lift through multiple-choice and short-answer questions. It includes a case study involving an online retail company, ShopNow, which aims to analyze customer purchasing behavior to enhance product recommendations. The quiz also requires calculations based on transaction data to derive insights for improving sales strategies.

Uploaded by

wahab.g20440
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS ANALYTICS

Market Basket Analysis – Quiz 3


Instructions: Answer the following multiple-choice and short-answer questions based on
your understanding of Market Basket Analysis concepts such as support, confidence, and
lift. Each MCQ has one correct answer.

Part A: Multiple Choice Questions (1 mark each)


1. What does the support of an itemset indicate?

 a) The number of rules generated from it


 b) The proportion of transactions that contain the itemset
 c) The probability of item occurrence given another item
 d) The likelihood that the rule has high lift

2. If support(Milk → Bread) = 0.4 and support(Milk) = 0.5, what is the confidence?

 a) 0.2
 b) 0.8
 c) 0.4
 d) 0.5

3. A lift value of 1.0 for a rule implies that:

 a) The rule has strong confidence


 b) The items always occur together
 c) The items are independent of each other
 d) The rule is invalid

4. Which of the following is NOT used in Association Rule Mining?

 a) Support
 b) Confidence
 c) Regression
 d) Lift

5. Which rule is more likely to be interesting?

 a) High support and low confidence


 b) Low support and low lift
 c) High confidence and lift > 1
 d) Lift < 1 and low confidence
Part B: Short Answer Questions (2 marks each)
6. Define confidence in the context of Market Basket Analysis.

7. Explain what it means when the lift value is greater than 1.

8. A rule 'Bread → Butter' has support = 0.6 and confidence = 0.75. Interpret these values.

9. Describe one real-life use case where Market Basket Analysis is useful.

10. Given 5 transactions and 3 contain both Milk and Bread, what is the support of {Milk,
Bread}?

Part C: Short Answer Questions (2 marks each)

Case Study: Market Basket Analysis in E-


Commerce
📦 Background
An online retail company, ShopNow, wants to analyze customer purchasing behavior on
their platform. They have collected transaction data to discover associations between items
bought together during a single order. Using Market Basket Analysis, they aim to improve
product recommendations and cross-selling strategies.

📈 Transaction Dataset
Below is a simplified sample of transactions (1 indicates purchased, 0 indicates not
purchased):

Transaction Laptop Mouse Keyboard Headphones USB Drive


ID
T001 1 1 1 0 0
T002 1 1 0 1 1
T003 0 1 1 1 0
T004 1 0 1 1 1
T005 0 1 0 1 0

🧠 Tasks
Based on the transaction data above, answer the following questions:

1. 1. Calculate the support, confidence, and lift for the rule: Mouse → Laptop
2. 2. Calculate the support, confidence, and lift for the rule: Laptop, Mouse → USB Drive
3. 3. Suggest one strategy ShopNow could apply using these rules to increase average
order value.

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