A 5% Reduction in the Customer Defection Rate Can Increase

question 143

Essay

A 5% reduction in the customer defection rate can increase profits by 25% to 85%,depending on the industry.Explain how this is so.

---

Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution.

Significance

A measure of how likely it is that an obtained result could have occurred by chance.

Independent Variables

Variables in an experiment or model that are manipulated or controlled to test their effects on dependent variables.

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.