Question
Assume a customer has been with a company for 10 years and has made purchases at...
Assume a customer has been with a company for 10 years and has made purchases at times .2, 1.2, .8, and 3. Estimate the probability the customer is still alive.
Homework Answers
Answer #1
If 
be the number of purchases, 
be the time of last purchase, 
be the time elapsed between acquisition of customer and present
time, then the probability that the customer is still alive at time
is given by 
, where 
Here 
and 
The probability that the customer is still alive is 
[Ans.]
Not the answer you're looking for?
Similar Questions
The customer service manager of a company has tracked the number of customer complaints that she...
The customer service manager of a
company has tracked the number of customer complaints that she has
received each day for the last 25 days. The data is:
0 complaints, 1 day
1 complaint, 2 days
2 complaints, 0 days
3 complaints, 2 days
4 complaints, 4 days
5 complaints, 1 day
6 complaints, 3 days
7 complaints, 3 days
8 complaints, 5 days
9 complaint, 3 days
10 complaints, 1 day
Based on this probability distribution, calculate:
The probability...
Stacey, Inc. has been selling widgets to businesses for many years. Some widgets are made to...
Stacey, Inc. has been selling widgets to businesses for many
years. Some widgets are made to order and require a deposit before
being made and others are sold “off the shelf”. Please consider
each of the following sales situations experienced by Stacey, Inc.
and answer the questions after each situation.
On August 3, 2018, Stacey sells $50,000 of made to order widgets
that will cost $32,000 to a regular customer. The customer makes a
cash deposit of $30,000 for the...
A grocery store’s reciepts show that Sunday customer purchases have a skewed distribution with a mean...
A
grocery store’s reciepts show that Sunday customer purchases have a
skewed distribution with a mean of $32 and a standard deviation of
$20. Complete parts a through c below.
-Multiple choice-
1.) Explain why you cannot determime the probability that the
next Sunday customer will spend at least $40.
a.) The probability can only be determimed if the point is
less than one standard deviation away from the mean
b.) The probability can only be determimed if the point...
An analyst has made the following estimate of Company Z’s dividends. After 5 years of growing...
An analyst has made the following estimate of Company Z’s
dividends. After 5 years of growing annually at 2% from an
initially value of $1.00, company Z is expected to quit growing and
pay a constant dividend of $1.5 indefinitely. (10 pts) If the
required return is 12%, what should the stock of Company Z sell for
today?
A company has a 10% bond that has a face value of $1000 and matures in...
A company has a 10% bond that has a face value of $1000 and
matures in 10 years. Assume that coupon payments are made
semi-annually. The bonds can be called after 5 years at a premium
of 5% over face value. What is the value of the bond if rates drop
immediately to 8%?
The profit margin (net income to sales ratio) at New Company is 20%. New Company gave...
The profit margin (net income to sales ratio) at New Company is
20%. New Company gave a customer a discount of 10%. However, if the
discount had only been 6% the
customer would still have made the same quantity of purchases.
The effect of the unnecessary discount was to reduce New Company
income by:
a. 4%
b. 6%
c. 20%.*
d. None of the above
Look for process work to understand why c. 20% is the correct
answer.
Company ABC has been paying regular dividend per share of $4 for over 10 years It...
Company ABC has been paying regular dividend per share of $4 for
over 10 years
It is paying all profits out as dividends and is not expected to
grow
It has 100,000 share outstanding and the share price is $80
Now the company instead changes to use its profit to repurchase
shares
1. What is the investor’s annual return in the current
situation
2. Calculate would be the number of shares that it would
repurchase and the expected share price...
Assume that a company is 35% debt and 65% equity financed. The company has a 10%...
Assume that a company is 35% debt and 65% equity financed. The
company has a 10% cost of equity and 8% after-tax cost of debt. It
considers undertaking a project which has a life of 5 years. If the
cash flows of the project are, on the average, spread evenly over
the life of the project, the optimal cutoff period is closest
to:
Select one:
a. 3.9 years
b. 4.2 years
c. 5.1 years
d. 6.1 years
Assume that a company is 35% debt and 65% equity financed. The company has a 10%...
Assume that a company is 35% debt and 65% equity financed. The
company has a 10% cost of equity and 8% after-tax cost of debt. It
considers undertaking a project which has a life of 5 years. If the
cash flows of the project are, on the average, spread evenly over
the life of the project, the optimal cutoff period is closest
to:
Select one:
a. 3.9 years
b. 4.2 years
c. 5.1 years
d. 6.1 years
A company just starting its business made the following four inventory purchases in June: Date Number...
A company just starting its business made the following four
inventory purchases in June:
Date
Number of
Units
Total Cost
Jun
1
190
$608
Jun
10
240
792
Jun
15
240
816
Jun
28
190
665
On June 25, the company made its first sale when a local customer
purchased 590 units for $3,500. The company uses a perpetual
inventory system.
Using the FIFO cost formula, the cost of the ending inventory on
June 30 is
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 21 seconds ago
asked 7 minutes ago
asked 9 minutes ago
asked 23 minutes ago
asked 38 minutes ago
asked 39 minutes ago
asked 41 minutes ago
asked 49 minutes ago
asked 53 minutes ago
asked 58 minutes ago
asked 58 minutes ago
asked 1 hour ago