ACorrect
ROI (return on investment)
Correct. ROI (return on investment) is a financial metric that shows how much profit or value was gained relative to the cost invested. It is used to make management decisions about whether a project is justified.
At a company executive meeting, the team is gathering material to decide whether to continue a generative AI project. What is the name of the financial metric that shows how much profit or value was gained relative to the cost invested in the project?
1 / 1
Select an answer
CorrectA
Explanation
Choosing the financial metric that shows return on investment.
- 1「how much profit or value was gained relative to the cost invested」The ratio of cost to profit
- 2「the financial metric」Return on investment is ROI
BIncorrect
TCO (total cost of ownership)
TCO is a metric that represents the total amount of cost from adoption through operation.
It looks at the size of the spend, not the ratio of profit or value to cost, so it is incorrect.
CIncorrect
Customer lifetime value (LTV)
LTV is a metric that represents the long-term value generated by a single customer.
It is a metric of value on the customer side, not the ratio of effect to investment, so it is incorrect.
DIncorrect
Conversion rate
Conversion rate is a marketing metric that represents the percentage of site visitors or leads (prospective customers) who take a target action such as a purchase, sign-up, or inquiry (for example, if 50 out of 1,000 visitors make a purchase, the conversion rate is 5%).
It looks at the percentage that reached an outcome, not a financial metric for the ratio of profit or value to the cost invested, so it is incorrect.
Key Takeaway
Remember the correct answer, ROI (return on investment).
・A financial metric that shows how much profit or value was gained relative to the cost invested.
・It serves as a basis for management decisions about the justification and priority of a generative AI project.
DPI (resolution), FPS (frame rate), and bitrate (data volume) are all technical metrics related to image quality or transmission, not a financial metric for return on investment.