Is Tax rate a good metric to monitor?

The question pertains to the first question in the exercise of the second page of this chapter
https://app.dataquest.io/c/84/m/468/business-metrics/2/whats-a-good-metric

I don’t understand how Tax rate is a metric that must be monitored.

Tax is a legal amount that is not dynamic enough, that you have to pay up. The hint asks the question, Is it actionable? , to which I would say No. Because the only way you could skirt it would be to reduce your own profits or find loopholes.

I’m not sure whether I’ve over thought this. Any help would be appreciated?

Hey, Jesma.

It isn’t. The answer to this question is no.

Thanks @Bruno! I could have sworn that the answer to that was yes earlier but seems I was wrong. Could you please confirm that the answer to all the questions on that page must be no?

  • You work in the admissions office of a reputable university and you have veto power. Consider the metric the number of students whose first name starts with “B”.
    Is it a relevant metric? Assign "yes" to ans21 if you think it is, otherwise assign "no".
    Is it an actionable metric? Assign "yes" to ans22 if you think it is, otherwise assign "no".

The answer to the second sub question here is yes in the exercises. However I feel its supposed to be no. Would you agree?
image

No. Since you have veto power, you can act on it. You can choose to not accept any applications whose name starts with “B”, or could accept all of them. It is an actionable, therefore the answer is yes.

I hope this helps.

Interesting…until I read your answer I saw this question in a completely different light.

What kept going through my mind was Why would anyone keep tabs of the number of students that start with B? Whats actionable about it?

Its clear now! Thank you :slight_smile:

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