You Are Trying to Attract New Customers That You Feel

question 189

Multiple Choice

You are trying to attract new customers that you feel could become repeat customers. The average price of the items you sell is $93 with a $70 variable cost. Your monthly interest rate is 2.1 percent.
Your experience tells you that 10 percent of these customers will never pay their bill. What is the
Value of a new customer who does not default on their bill?

• A) $986
• B) $1,095
• C) $2,617
• D) $3,333
• E) $4,429

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Definitions:

Efficient Stroke

In the context of swimming, a technique that optimizes each stroke for maximum propulsion with minimal energy expenditure.

Observational Learning

A method of learning where behaviors are developed by observing and replicating the actions performed by others.

Bandura

A psychologist best known for his work on social learning theory, emphasizing the role of observational learning in behavior.

Observational Learning

The process of acquiring information by observing others; learning by watching and imitating others' actions.