Purchase Analytics Descriptive Statistics: Purchase occasion and purchase Incidence
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 answers ( 0 marked as helpful)
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