A local business is studying monthly subscription rates over a year and wants to know if the rates are moving upward or downward. Which method best helps them spot this movement?
Perform a chi-square test to measure how each month relates to the overall subscription frequency
Use a chart or line plot displaying monthly data points in time order to observe the pattern
Compare each month to the previous month using a ratio to see short-term gains or losses
Calculate a Z-score for each monthly subscription rate to see how far data points deviate from the average
Constructing a chronological progression of monthly rates reveals gradual or steady patterns. Computing how far each data point is from its overall mean does not directly show direction. A month-over-month ratio approach focuses on short-term comparisons but may not reveal an entire trend. A chi-square test is more appropriate for examining relationships between categorical variables rather than detecting a directional shift over time.
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What are the advantages of using a line plot for analyzing subscription rates?
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What is the significance of tracking trends in subscription rates?
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How can businesses enhance their analysis of subscription rates beyond line plots?