Which of the Following Statements Is True of Customer Lifetime

question 31

Multiple Choice

Which of the following statements is true of customer lifetime value?

• A) Salespeople lay more emphasis on a single sale rather than the combined value of future sales.
• B) Customer lifetime value is only measured for transactions involving a solo exchange.
• C) There is no way to estimate the sum of future sales.
• D) Customer lifetime value is a statement explaining how a salesperson's products will effectively solve the buyer's business issue.
• E) Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars.

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Definitions:

Nonparametric Test

A different phrasing for nonparametric statistics, these are tests used for analyzing data when the assumptions for parametric tests cannot be met, focusing on the ranks or orders of the data.

McNemar

A statistical test used to determine if there are differences on a dichotomous dependent variable between two related groups.

Fisher's Exact

A statistical significance test used in the analysis of contingency tables where sample sizes are small.

Expected Frequency

The number of occurrences predicted in a category of a contingency table based on probabilistic models.