Page 1 of 137
Decoding Telecom Customer Churn |
Complete Data Mining & ML Project | 2026
A+ Report.
Q1. In the telecom customer churn prediction project, what is the
primary business problem being addressed?
A) Increasing customer acquisition rates
B) Identifying customers likely to leave and enabling proactive
retention strategies
C) Reducing network infrastructure costs
D) Improving call quality
Answer: B
Rationale: The project’s core problem is to analyze telecom
customer data to predict which customers are likely to churn and
identify key churn drivers, enabling the business to take
proactive retention actions.
,Page 2 of 137
Q2. Why is customer churn a critical threat to growth in
subscription-based telecom businesses?
A) It only affects customer satisfaction, not revenue
B) Churn leads to revenue leakage, high replacement costs,
and reduced customer lifetime value (CLV)
C) Churn is easily reversible without cost
D) Churn has no impact on long-term relationships
Answer: B
Rationale: The project report states that a churn rate of ~26%
indicates revenue leakage, high customer replacement costs, and
reduced CLV.
Q3. Which of the following best describes the cost comparison
between customer retention and acquisition?
A) Acquisition is cheaper than retention
,Page 3 of 137
B) Retention and acquisition cost the same
C) Retaining existing customers is far more cost-effective than
acquiring new ones
D) There is no relationship between retention and acquisition
costs
Answer: C
Rationale: The business context emphasizes that “retaining
existing customers is far more cost-effective than acquiring new
ones”.
Q4. What is the estimated churn rate in the Telco Customer Churn
dataset used for this project?
A) 15%
B) 73%
C) 26%
D) 50%
, Page 4 of 137
Answer: C
Rationale: The dataset contains 7,043 customers with a churn
rate of approximately 26%.
Q5. The target variable in the churn prediction problem is:
A) CustomerID
B) MonthlyCharges
C) Churn (Yes/No)
D) Tenure
Answer: C
Rationale: The target variable is “Churn (Yes / No)”, a binary
classification problem.
Q6. Which of the following is NOT a stated business objective of
the churn prediction project?
A) Predict customer churn accurately
Decoding Telecom Customer Churn |
Complete Data Mining & ML Project | 2026
A+ Report.
Q1. In the telecom customer churn prediction project, what is the
primary business problem being addressed?
A) Increasing customer acquisition rates
B) Identifying customers likely to leave and enabling proactive
retention strategies
C) Reducing network infrastructure costs
D) Improving call quality
Answer: B
Rationale: The project’s core problem is to analyze telecom
customer data to predict which customers are likely to churn and
identify key churn drivers, enabling the business to take
proactive retention actions.
,Page 2 of 137
Q2. Why is customer churn a critical threat to growth in
subscription-based telecom businesses?
A) It only affects customer satisfaction, not revenue
B) Churn leads to revenue leakage, high replacement costs,
and reduced customer lifetime value (CLV)
C) Churn is easily reversible without cost
D) Churn has no impact on long-term relationships
Answer: B
Rationale: The project report states that a churn rate of ~26%
indicates revenue leakage, high customer replacement costs, and
reduced CLV.
Q3. Which of the following best describes the cost comparison
between customer retention and acquisition?
A) Acquisition is cheaper than retention
,Page 3 of 137
B) Retention and acquisition cost the same
C) Retaining existing customers is far more cost-effective than
acquiring new ones
D) There is no relationship between retention and acquisition
costs
Answer: C
Rationale: The business context emphasizes that “retaining
existing customers is far more cost-effective than acquiring new
ones”.
Q4. What is the estimated churn rate in the Telco Customer Churn
dataset used for this project?
A) 15%
B) 73%
C) 26%
D) 50%
, Page 4 of 137
Answer: C
Rationale: The dataset contains 7,043 customers with a churn
rate of approximately 26%.
Q5. The target variable in the churn prediction problem is:
A) CustomerID
B) MonthlyCharges
C) Churn (Yes/No)
D) Tenure
Answer: C
Rationale: The target variable is “Churn (Yes / No)”, a binary
classification problem.
Q6. Which of the following is NOT a stated business objective of
the churn prediction project?
A) Predict customer churn accurately
