5. The average lifetime duration of credit card clients of Work Bank is 5 years. a) What is retention rate of Work Bank for credit card clients? b) What is defection rate of Work Bank for credit card clients? c) If Work Bank had 100,000 credit card customers clients in the beginning of 2015, how many of these clients will be retained by the Bank by the end of 2018? (assume that the retention rate does not change throughout the years 6. The defection rate of the time-deposit clients of White Bank is 10%? a) What is retention rate of White Bank's time deposit clients? b) What is the life time duration of White Bank's time deposit clients? 7. GOLDY, an expensive jewelry shop acquired 5 clients in the beginning of 2010. (Assume that we are now at 2018 year end.) 1st client stopped purchasing from GOLDY at the end of 2012. 2nd client is still purchasing from GOLDY. 3rd client died at the end of 2014 4th client is still purchasing from GOLDY. 5th client is stopped purchasing from GOLDY at the end of 2016. a) What is the average lifetime duration of GOLDY's clients? b) What is retention rate of GOLDY's clients? c) If GOLDY has 100 clients by the end of 2018, how many of these clients will be retained by the end of 2020? (assume that the retention rate does not change throughout the years)
5. The average lifetime duration of credit card clients of Work Bank is 5 years. a) What is retention rate of Work Bank for credit card clients? b) What is defection rate of Work Bank for credit card clients? c) If Work Bank had 100,000 credit card customers clients in the beginning of 2015, how many of these clients will be retained by the Bank by the end of 2018? (assume that the retention rate does not change throughout the years 6. The defection rate of the time-deposit clients of White Bank is 10%? a) What is retention rate of White Bank's time deposit clients? b) What is the life time duration of White Bank's time deposit clients? 7. GOLDY, an expensive jewelry shop acquired 5 clients in the beginning of 2010. (Assume that we are now at 2018 year end.) 1st client stopped purchasing from GOLDY at the end of 2012. 2nd client is still purchasing from GOLDY. 3rd client died at the end of 2014 4th client is still purchasing from GOLDY. 5th client is stopped purchasing from GOLDY at the end of 2016. a) What is the average lifetime duration of GOLDY's clients? b) What is retention rate of GOLDY's clients? c) If GOLDY has 100 clients by the end of 2018, how many of these clients will be retained by the end of 2020? (assume that the retention rate does not change throughout the years)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:5. The average lifetime duration of credit card clients of Work Bank is 5 years.
a) What is retention rate of Work Bank for credit card clients?
b) What is defection rate of Work Bank for credit card clients?
c)
If Work Bank had 100,000 credit card customers clients in the beginning of 2015, how
many of these clients will be retained by the Bank by the end of 2018? (assume that the
retention rate does not change throughout the years
6. The defection rate of the time-deposit clients of White Bank is 10%?
a) What is retention rate of White Bank's time deposit clients?
b) What is the life time duration of White Bank's time deposit clients?
7. GOLDY, an expensive jewelry shop acquired 5 clients in the beginning of 2010. (Assume that
we are now at 2018 year end.)
1st client stopped purchasing from GOLDY at the end of 2012.
2nd client is still purchasing from GOLDY.
3rd client died at the end of 2014
4th client is still purchasing from GOLDY.
5th client is stopped purchasing from GOLDY at the end of 2016.
a) What is the average lifetime duration of GOLDY's clients?
b) What is retention rate of GOLDY's clients?
c)
If GOLDY has 100 clients by the end of 2018, how many of these clients will be retained
by the end of 2020? (assume that the retention rate does not change throughout the
years)
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