Which calculation meets these requirements?

A client has a large data set that contains more than 10 million rows.

A consultant wants to calculate a profitability threshold as efficiently as possible.

The calculation must classify the profits by using the following specifications:

– Classify profit margins above 50% as Highly Profitable.

– Classify profit margins between 0% and 50% as Profitable.

– Classify profit margins below 0% as Unprofitable.

Which calculation meets these requirements?
A . IF [ProfitMargin]>0.50 Then ‘Highly Profitable’ ELSEIF [ProfitMargin]>=0 Then ‘Profitable’ ELSE ‘Unprofitable’
END
B . IF [ProfitMargin]>=0.50 Then ‘Highly Profitable’ ELSEIF [ProfitMargin]>=0 Then ‘Profitable’ ELSE ‘Unprofitable’
END
C . IF [ProfitMargin]>0.50 Then ‘Highly Profitable’
ELSEIF [ProfitMargin]>=0 Then ‘Profitable’
ELSEIF [ProfitMargin] <0 Then ‘Unprofitable’
END
D . IF([ProfitMargin]>=0.50,’Highly Profitable’, ‘Profitable’) ELSE ‘Unprofitable’
END

View Answer

Answer: B

Explanation:

The correct calculation for classifying profit margins into categories based on specified thresholds involves the use of conditional statements that check ranges in a logical order:

Highly Profitable Classification: The first condition checks if the profit margin is 50% or more. This must use the ">=" operator to include exactly 50% as "Highly Profitable".

Profitable Classification: The next condition checks if the profit margin is between 0% and 50%. Since any value falling at or above 50% is already classified, this condition only needs to check for values greater than or equal to 0%.

Unprofitable Classification: The final condition captures any remaining scenarios, which would only be values less than 0%.

References:

Logical Order in Conditional Statements: It is crucial in programming and data calculation to ensure that conditions in IF statements are structured in a logical and non-overlapping manner to accurately categorize all possible values.