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50,000 shoppers with a 0.5% conversion rate for a chair that costs $250. Wayfair makes a 27% profit. Next, 50,000 shoppers will get a 10% discount. What is the conversion rate they must achieve to achieve the same profits as before?

10 Answers

Step 1: Calculate profit (250 * 250 * 0.27 = 16875) Step 2: Calculate discount price (250 * 0.9 = 225) Step 3: Calculate price of chair (250 * 0.73 = 182.5) Step 4: Calculate profit margin ( (225 - 182.5)/225 = .19) Step 5: Calculate new conversion rate (225 * 0.19 * x = 16875) x = 395 395/50000 = 0.79% the new conversion rate

This is incorrect Old revenue = 50000*250*.005=250*250 New revenue with conversion rate r% = 50000*r*250*.9 = old revenue = 250*250 r = .55%

Scenario 1 Number of sales=50,000*.5/100 = 250. Revenue=250*250 = 62,500. Profit is 27%. Therefore 62,500 = 1.27*cost Therefore cost = 49,212.598. Profit = 62,500-49212.598 = 13,287.40. Cost of chair = 250/1.27 = 196.85 Scenario 2 Number of sales = 50,000*r/100 = 500*r (r is new converion rate) Revenue = 500*r*.9*250 Total cost = 500*r*196.85 Profit = 500*r(250*.9-196.85) = 13,287.40 500*r*(28.1496) = 13,287.40. Therefore r = 0.944. The first answer considers profit as margin (percentage of sales) which seems incorrect or needs to be clarified

The typical "difficult" question that comes up in Business Intelligence is (and I'm paraphrasing), "What's the best data warehouse solution?".

1 Answer

Describe the different parts of an SQL statement

1 Answer

What reporting tools have you used? Actuate, Brio, Crystal Reports? How much experience have you had in scheduling jobs on Unix? Can you write XML and implement it?

1 Answer

Whats the difference between inner join and outer join?

1 Answer

Explain/define "Weighted Average".

1 Answer

What is a Cartesian product?

1 Answer

What is a clustered/non clustered index.

2 Answers

You have a table called Order with Cust_ID, Order_Date, Order_ID, Tran_Amt. Select the top 100 customers with high spend over a year long period.

3 Answers
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