New Data Test

 Instructions: Please complete this this test in 2 hours (120 minutes).  Show as much work as possible and work . If you have a questi question on about anything, anything, please please ust ust ma!e a reasona reasonable ble assumption, assumption, ma!

nd use the excel file to record your answers ng sure to clearly state all such assumptions.

Suggested Time: 75 minutes

Background

Forecasting refers to predicting a future event or trend Relationships are connections found within the data  Ad Copy is the main main text of an adverstisement designed to get the reader to respond or take action Tagline refers to a headline (ex. "ust !o t"# Scenario

oe$ the %ita&ath C'$ has asked you to review the uly data and present p resent him with expectations for Augus %ita&ath is a vitamin chain throughout Canada  All orders are shipped shipped Fed'x vernight or )nd!ay on the the date re*uested +y the customer  %ita&ath ac*uires new customers with daily spots on the ,ealth -etwork$ and also enoys a +risk repeat +u Three times each month$ %ita&ath sends an e/mail to its entire customer +ase containing special offers uly sales data are detailed +elow$ and the e/mail drop dates are highlighted in +lue Questions

 A# Create a forecast for August daily orders$ shipments$ shipments$ new customers$ and repeat orders orders in the +elow ta+ 0# &lease explain all of the relationships you discovered a nd analysis you performed. Try to to find relations C# !raft a response response to oe$ the C'. 0e sure to include1 2. The relationships found in uly uly ). 'xpectations for August 6. A sample of copy to use for the end of August August e/mail +last. Include a tagline or offer text

2/ul )/ul 6/ul 8/ul 4/ul 7/ul ;/ul 5/ul 9/ul 2:/ul 22/ul 2)/ul 26/ul 28/ul 24/ul 27/ul 2;/ul 25/ul 29/ul ):/ul )2/ul ))/ul )6/ul )8/ul

rders 3hipments )$)45 6$678 2$498 6$):2 2$:;5 : 7:4 : 586 2$678 729 ;)7 556 : 6$:98 6$649 6$449 )$778 )$4:) )$54; )$:82 6$247 2$6:7 959 ;29 ;29 952 : 6$462 6$876 8$::6 6$:25 )$7); )$952 )$228 6$897 2$447 2$:75 ;69 ;7) 927 : )$);7 6$:7: )$)85 )$6:7 )$26: )$)54

-ew Customers 749 4:7 666 )26 )57 297 62: 56; 949 542 757 8:6 )74 665 924 ;98 542 ;)) 425 )8: )9: ;82 ;56 ;;7

Repeat rders 2$499 2$:55 ;84 69) 44; 8)6 4;6 )$)4; )$7:: 2$742 2$644 9:6 848 786 )$727 6$):9 2$;;7 2$69) 2$:65 899 7)7 2$464 2$874 2$648

)4/ul )7/ul );/ul )5/ul )9/ul 6:/ul 62/ul 2/Aug )/Aug 6/Aug 8/Aug 4/Aug 7/Aug ;/Aug 5/Aug 9/Aug 2:/Aug 22/Aug 2)/Aug 26/Aug 28/Aug 24/Aug 27/Aug 2;/Aug 25/Aug 29/Aug ):/Aug )2/Aug ))/Aug )6/Aug )8/Aug )4/Aug )7/Aug );/Aug )5/Aug )9/Aug 6:/Aug 62/Aug

2$5;7 2$6:2 772 56: 6$6;: 6$595 )$5:6

)$598 97: 465 : 6$28; )$55) 6$))9

7); 824 )); );5 ;9: ;9: 545

2$)89 557 868 44) )$45: 6$2:5 2$984

siness

 

le. "o not rely on the forecast and trend functions for your answer. hips between the different columns of data. (ex. list form)

nd be creatie!

Suggested Time: 45 Minutes

Background Info

mpressions are the num+er of instances that an online advertisement is displayed. Clicks are instances of someone clicking on an advertisement. nly a fraction of impressions results in clicks. rders are instances of someone making a purchase. nly a fraction of clicks result in orders. n paid search$ for a given search word$ the ads for multiple companies may +e displayed.  Ads shown in higher positions positions on the page result in a greater num+er of clicks. Companies pay a certain < amount a mount each time a customer clicks on their ad .  A higher higher < per click amount paid +y a company gives the company a higher position position on the page. Scenario

=ou are currently in position ) of a paid search term$ the click/through rate is 2>$ and the cost per click is <2.4:. =ou can get into position 2 +y paying <).4: <) .4: per click. n position 2$ you expect a click/though rate of 2.4>. n position 6 you would pay <:.4: cost per click and have a click/though rate of :.4>. The conversion rate once someone clicks is 2:> in all 6 positions. ur total profit per order?+efore search costs?is <6:. ur goal is to maximi@e a+solute < profit. p rofit. Questions

 A# hat is the cost per order in position )B 0# hat is the cost per order in position 2B C# hich of the 6 positions do you want to +e inB !# At what click through rate in position 2 are you indifferent +etween positions 2 and )B '# hat is the marginal cost per order of the orders you lose +y moving from position ) down to position 6B #lease show all your analysis$ and specify any assumptions you make.