Customer Equity

question 33

Multiple Choice

Customer equity

• A) focuses on the costs of acquiring new customers rather than on increasing revenues from current customers.
• B) is basically a historical measure of how profitable a firm has been in the past.
• C) is a concept that applies to firms that target final consumers but not to firms that target business customers.
• D) will increase if a firm increases its market share with a particular strategy.
• E) is the expected earnings stream of a firm's current and prospective customers over some time period.

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Definitions:

Margin Of Error

An estimate of the amount by which an observed sample statistic may differ from the true population parameter, reflecting the confidence level of the statistic.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values across a whole population.

Sample Size

The number of participants or observations included in a sample, used in statistical analysis to make inferences about a larger population.

T-Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population standard deviation is unknown.