Of 100,000 customers who were active in 2005, 60,000 are still active in 2006. The maverage retention rate is
A) It can't be determined since the initial 100,000 have not been segmented into cohorts.
B) 40%
C) 1 × .9 × .6 = 54%
D) 60%
E) None of the above

Question

Quizplus · Accepted Answer

The retention rate is calculated by dividing the number of customers still active in 2006 by the number of customers who were active in 2005, which is 60,000/100,000 = 60%.

Of 100,000 Customers Who Were Active in 2005, 60,000 Are