Question

An Internet service provider (ISP) acquires 1,000 customers who will pay $50 at the end of...

An Internet service provider (ISP) acquires 1,000 customers who will pay $50 at the end of each month for the service, with a gross margin of $25. The ISP retains 80% of its customers each month and discontinues service immediately to anyone who fails to make a payment, without attempting to reactivate the customer.

  1. Find the CLV of this cohort, assuming a monthly discount rate of 1%.
  2. If the ISP only retains 70% of its customers, what is the decrease in CLV?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Net-4-You is an Internet Service Provider that charges it 1 million customers $19.95 per month for...
Net-4-You is an Internet Service Provider that charges it 1 million customers $19.95 per month for its service. The company variable costs are $.50 per customer per month. In addition, the company spends $.50 per month per customer, or $6 million annually, on a customer loyalty program designed to retain customers. As a result, the company monthly customer retention rate was 78.8 percent. Net-4-You has a monthly discount rate of 1 percent. a. what is the customer lifetime value if...
Internet service: An Internet service provider sampled 535 customers, and finds that 64 of them experienced...
Internet service: An Internet service provider sampled 535 customers, and finds that 64 of them experienced an interruption in high-speed service during the previous month. (a) Find a point estimate for the population proportion of all customers who experienced an interruption. Round the answer to at least three decimal places. The point estimate for the population proportion of all customers who experienced an interruption is 0.120 b) Construct an 80% confidence interval for the proportion of all customers who experienced...
An Internet service provider sampled 540 customers and found that 75 of them had experienced an...
An Internet service provider sampled 540 customers and found that 75 of them had experienced an interruption in high-speed service during the previous month. Compute a 99% confidence interval for the proportion of customers who have experienced a service interruption during the previous month.
An Internet service provider sampled 545 customers, and finds that 73 of them experienced an interruption...
An Internet service provider sampled 545 customers, and finds that 73 of them experienced an interruption in high-speed service during the previous month. Construct a 99.5% confidence interval for the proportion of all customers who experienced an interruption. Round the answers to at least three decimal places.
An Internet service provider sampled 473 customers, and finds that 110 of them experienced an interruption...
An Internet service provider sampled 473 customers, and finds that 110 of them experienced an interruption in high-speed service during the previous month. What is the upper bound for the 99% confidence interval for the proportion of customers who experienced an interruption? Round to three decimal places (for example: 0.419). Write only a number as your answer.
A regional Internet provider keeps records of complaints received from its customers. Complaints for last month...
A regional Internet provider keeps records of complaints received from its customers. Complaints for last month are listed in the following table. What percent of the complaints are due to the category Unreliable/Frequently stops working? Round your answer to two decimal places, if necessary. Customer ComplaintsType of Complaint Frequency Too expensive 174 Unreliable/Frequently stops working 242 Page loading too slow 111 Download/Upload speed too slow 98 Extra data usage charges 67 Poor tech support 103 Long customer service wait times...
Question 6 An Internet service provider sampled 474 customers, and finds that 102 of them experienced...
Question 6 An Internet service provider sampled 474 customers, and finds that 102 of them experienced an interruption in high-speed service during the previous month. What is the upper bound for the 99% confidence interval for the proportion of customers who experienced an interruption? Round to three decimal places (for example: 0.419). Write only a number as your answer. Question 7 In the computer game World of Warcraft, some of the strikes are critical strikes, which do more damage. Assume...
ASSIGNMENT Customer Lifetime Value STEP 1: CONSIDER RELEVANT NUMBERS Netflix obtains paying subscribers through unique deals...
ASSIGNMENT Customer Lifetime Value STEP 1: CONSIDER RELEVANT NUMBERS Netflix obtains paying subscribers through unique deals like bundles and discount. Here are numbers to use in order to calculate metrics for this assignment: ● Customers pay $12.99/month for a subscription ● The average subscription length is 25 months. Customer lifetime revenue = ($12.99 X 25 = $324.75) ● Cost to acquire and maintain each subscriber = $99 ● Annual Retention rate = 60 percent ● Annual Discount rate = 10...
1. What is an ISP (Integrated Service Provider) for supply chains? (1 point) A. A consultant...
1. What is an ISP (Integrated Service Provider) for supply chains? (1 point) A. A consultant agency which integrates the supply chain for companies B. A 2 PL or a 3PL, but not a 4PL C. A company supplying transportation and warehousing services D. A logistics service company specialized in suppling VAS (value added services) 2. What characterizes a 4 PL? (1 point) A. They are non-asset based and provides integrated services primarily supplied by asset based providers, for example...
Pierre’s is a small sandwich shop just off the Northern College campus. Customers enter off the...
Pierre’s is a small sandwich shop just off the Northern College campus. Customers enter off the street into a small counter area to order one of 10 varieties of sandwiches and a soft drink. All orders must be taken out because there is no space for dining in. The owner of Pierre’s is Serge Blouin, son of Pierre Blouin, who founded the shop. Serge is attempting to construct a series of budgets. He has accumulated the following information: The average...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT