Question 1

When normalizing a sales database, which scenario represents a transitive dependency that violates Third Normal Form (3NF)? (difficulty: hard)

Options :

A : Order ID determines Customer ID

B : Customer ID determines Order Total

C : Customer ID determines Zip Code, which determines City

D : Order ID determines Product ID

Answer: C

Question 2

In a GMAT data sufficiency question about customer demographics, what should you do when Statement (1) provides categorical data and Statement (2) provides numerical data? (difficulty: medium)

Options :

A : Focus only on the numerical data

B : Convert all data to the same type before analyzing

C : Evaluate how each type of data relates to the specific question being asked

D : Skip questions with mixed data types

Answer: C

Question 3

A retail company improved its inventory turnover from 4 to 6 times per year while maintaining the same sales level. What does this indicate about inventory management efficiency? (difficulty: medium)

Options :

A : The company needs more warehouse space

B : The company-s sales have increased

C : The company is holding less average inventory

D : The company-s carrying costs have increased

Answer: C

Question 4

In regression analysis, when examining the relationship between advertising spend and sales revenue, what does a p-value of 0.002 for the coefficient indicate? (difficulty: medium)

Options :

A : The advertising spend variable has a 0.2% probability of being significant

B : There is a 99.8% confidence that the relationship between advertising and sales is not due to random chance

C : The advertising spend explains 0.2% of the variation in sales revenue

D : The model will be wrong 0.2% of the time

Answer: B

Question 5

When analyzing KPIs for a retail business, what would a consistently increasing Cost of Customer Acquisition (CAC) coupled with decreasing Customer Lifetime Value (CLV) most likely indicate? (difficulty: hard)

Options :

A : The business is experiencing healthy growth

B : The marketing strategy is highly effective

C : The business model may be unsustainable

D : The business is targeting the right customer segment

Answer: C

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