Statistical Estimation & Inference

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You are a marketing manager
for a company that makes ready-to-eat breakfast cereals. Your company recently
initiated a loyalty program for consumers, which resulted in a large purchaser
database. The brand managers are eager to mine the available data, which they
can use to design more effective promotional programs. Your first step is to
conduct an exploratory baseline analysis, the goal of which is to describe the
buyer base and estimate basic statistical descriptors of the said buyer base.
You are particularly interested in the size of individual purchases, as well as
the frequency of repurchases. Describe the individual statistics you would
compute and discuss what would you learn from each statistic that would be of
value in designing effective promotions.

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