PROBLEM $2$:

XYZ Corporation, a leading retail company, is investing in Business Intelligence $($BI$)$ to gain deeper insights into customer behavior and improve decision$-$making. Answer the following questions:

a$.$ Define what Business Intelligence is and how it can benefit the company in its operations and decision$-$making processes.

b$.$ Outline the three primary activities in the BI process at XYZ Corporation, emphasizing the significance of each.

c$.$ Discuss three specific techniques that $xYZ$ Corporation can employ for processing BI data. Provide a brief explanation of how each technique contributes to the overall $BI$ strategy.

d$.$ Explain how XYZ Corporation can use RFM analysis to classify its customers based on recency, frequency, and monetary value.

e$.$ Given the following RFM table, what can you say about customer classification? RFM values ranging from $1$ to $5,$ where $1$ represents the best score.

$\backslash$table$[[$Customer ID$,$Recency $($R$),$Frequency $($F$),$Monetary Value $($M$)],[101,4,3,5],[102,2,5,4],[103,1,2,3]]$

f$.$ Given the following transactions:

Transaction $1$: Clothing, Shoes, Accessories$\}$

Transaction $2$: $\{$Electronics$,$ Clothing, Home Decor$\}$

Transaction $3$: $\{$Shoes$,$ Accessories, Electronics$\}$

If a customer buys Clothing, what is the confidence that they will also buy Shoes?