Question: 1. Background Information You are working for a telecommunications provider. The company wants to improve their customer lifetime value (CLV) calculations for newly acquired customers.

1. Background Information You are working for a telecommunications provider. The company wants to improve their customer lifetime value (CLV) calculations for newly acquired customers. The key question that the firms marketing managers have is how they can account for the fact that it is very difficult to know how long a particular customer will be loyal to the customer. Yet customer relationship duration is one of the key information to be considered in CLV calculations. When they describe this problem to you, you suggest that you might be able to help. In particular, you believe that you can use a survival model in order to predict customer survival probabilities and then use those probabilities to improve the CLV calculations. You agree with the marketing managers that you will check the data available and perform the necessary analyses for them. 2. Data, Sample and Variables You are provided a dataset that contains information about 2,846 randomly sampled customer relationships. The dataset is called "telecom_churn\" and is a csv file. The dataset has been cleaned already. It contains the following variables: Churn: Information whether or not a customer has churned. AccountWeeks: The duration of the customer relationship as it is reflected in the time the customer had an active account at the firm. The variable is captured in weeks. DataPlan: Whether or not a customer has a data plan Datalsage: Gigabytes of average monthly data usage DayMlins: Average daytime minutes (calling time) per month DayCalls: Average number of daytime calls MonthlyCharge: Average monthly bill OverageFee: Largest overage fee in the last year RoamMins: Average number of roaming minutes servicecall: Whether or not a customer has called the service line more than once. 3. Your Tasks Please use R to perform the following tasks. You can earn a total of 100 points. Please submit one file (word or PDF) with the answers to the individual questions in the submission box provided on Moodle. Please make sure that each answer is correctly numbered and that the answer to each guestion starts on a new page
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