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Business Data Management · End Term · 21 Dec 2025 · September 2025 term

Question 50: In a "Churn Prediction" model, you include a variable "C…

Question 50

+1.5 marksOne correct option

In a "Churn Prediction" model, you include a variable "Customer calls to support line". You find a positive correlation (More calls = Higher Churn). However, for a subset of high-value customers, More calls = Lower Churn. This phenomenon is known as:

  1. A

    Simpson’s Paradox

  2. B

    The Pareto Principle

  3. C

    Regression to the Mean

  4. D

    The Law of Large Numbers

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Correct answer

  • A

    Simpson’s Paradox

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Question 50 of 50 in the IIT Madras BS Business Data Management (BDM) End Term paper sat on 21 Dec 2025, in the September 2025 term (Business Data Management 18 Dec 25). It carries 1.5 marks.

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