Question: Kroger is trying to determine how profitable its loyalty program is . Two types of customers are those who joined the loyalty program ( called
Kroger is trying to determine how profitable its loyalty program is Two types of
customers are those who joined the loyalty program called loyals and those who did
not called nonloyals The cost of serving a loyal customer per week is $ greater
than that of serving a nonloyal customer. Kroger collected a sample of customers
with loyals and nonloyals in it The average weekly spending of loyal and non
loyal customers in the sample is $ and $ respectively. The standard deviation of
spendings for loyal and nonloyal customers is $ and $ in the sample, respectively.
Given this information, is it profitable for Kroger to maintain a loyalty program
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