HW Questions $($Submit Answers as a Word document$)$:

At Period $N+5,$ what percentage of customers from the original $1000$ will we have lost $($i$.$e$.,$ what is our $5$year customer churn rate$)?$

What is the cumulative CLV of our current $(1000$ customer$)$ customer base?

What is the average CLV for an Active customer? A Warm customer? A Cold customer?

What$-$If Analysis. Imagine that a new rival has entered our market. As a result we have less confidence in future revenues. Re$-$run your analysis with a discount rate set to $20\%(\mathrm{.}20).$ How did this impact our valuation$/$estimate of future revenues $($CLV estimate$)$ from our current customer base?

What$-$If Analysis. Imagine that we have decided to offer a premium service to try and retain more of our Active customers. As a result, it is expected that we will increase retention of our Active customers to $60\%.$ The Active$-$to$-$Warm transition will remain $30\%.$ But the Active$-$to$-$Cold transition cell will reduce to $10\%.$ Re$-$run your analysis. How does change this impact the average CLV for an Active customer?