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Purchase Analytics Descriptive Statistics: Purchase occasion and purchase Incidence

Purchase Analytics Descriptive Statistics: Purchase occasion and purchase Incidence

Super Learner
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During the lecture, the instructor stated to answer
“How often people from different segments visit the store?” the standard deviation for Career-Focused is quite high, that implies that customer in this segment is homogeneous.
then while answering this question “How often people from different segments buy a product (chocolate candy bar)?”. he stated that Fewer-Opportunities with lowest std is the most homogenous segment. could you explain to me more coz I got confused?

1 Answer

365 Team
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Hi Ahmad, 
thank you for reaching out and sorry for the confusion. In the lecture the following is stated:
“the standard deviation amongst customers from the second segment[career-focused] is quite high. This implies that the customers in this segment are least homogeneous, that is, least alike when it comes to how often they visit the grocery store.” 
To recap:
the higher the standard deviation – the more diverse a segment is.
the lower the standard deviation – the more homogeneous a segment is.
 
Best, 
Eli