Which Metric Is Based on the Relationship Between the Revenue

question 68

Multiple Choice

Which metric is based on the relationship between the revenue produced by a specific customer,the expenses incurred in acquiring and servicing that customer,and the expected life of the relationship between the customer and the company?

• A)Churn rate
• B)Customer lifetime value
• C)Cost per lead
• D)Cost per sale
• E)Customer average value

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Definitions:

Expected Frequencies

The theoretically predicted counts of occurrences across different categories in a contingency table, used in chi-squared tests.

Chi-Square Distribution

A statistical distribution used to assess the goodness-of-fit between observed and expected frequencies.

Degrees of Freedom

The number of independent pieces of information available to estimate another parameter.

Expected Frequencies

The anticipated count of occurrences across different categories based on probability distributions in statistics.