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One popular classification technique in Business Intelligence (BI) reporting is ________ .

  • A.cluster analysis only
  • B.regression analysis only
  • C.RFM analysis only
  • D.both cluster analysis and regression analysis

Answer: C

Correct answer: RFM analysis only

RFM classifies customers into groups from their purchasing behaviour using nothing more than sorting and simple arithmetic, which places it firmly in reporting. Cluster analysis and regression are data mining techniques, requiring statistical machinery that a reporting system does not provide - the distinction the whole chapter turns on.

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