This community-built FAQ covers the “Reorder Rates” exercise from the lesson “Advanced Aggregates”.
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This exercise can be found in the following Codecademy content:
SQL: Analyzing Business Metrics
FAQs on the exercise Reorder Rates
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can somebody please explain me reorder ratio. It says that lower ratio means reorders. but for example if I have 10 orders and 8 people order for first time and 1 person reorders so that makes 9 distinct persons. so ratio=10/9=1.1
but if 5 people each order twice then no of orders=10 but no of distinct person=5. so ratio=10/5=2. so higher ratio means reorder which is contradicting.
There is a logical mistake in Exercise 11 description (that is bad for the commercial product of such level):
A lower ratio means most of the orders are reorders. A higher ratio means more of the orders are first purchases.
And is correct in the next exercise:
… they have a very high reorder rate. That means these smoothie customers are strong repeat customers.
Reorder ratio is an average rate that shows us how many cakes were bought by a person.
Consider the following example:
cakes persons c. per p.
100 / 200 = 0.5
100 / 100 = 1.0
100 / 50 = 2.0
100 / 10 = 10.0
That means that everything that <= 1 tells that a person bought a cake at best, 1.5 - that at least half of the persons bought a cake twice and 2.0 tells about two cakes per person. Yes, 2.0 may mean that 40 persons bought a cake once and 10 persons bought 6 times a cake but the more details you want to know the deeper analysis you should make and the more expensive it will be. 
But how do you explain that low ratio means people are reordering and high ratio means new orders
Vartika Kedia
https://discuss.codecademy.com/t/re-order-rates-logic/21791
It seems other people noticed the same thing back in 2016. Seems it still hasn’t been fixed…
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