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retention rate, which affects market share. Additional internal analysis finds that: - Every shipping error over 2 shipping errors per month reduces the customer retention
retention rate, which affects market share. Additional internal analysis finds that: - Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1.5%. - On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%. - Each day before two days from order to delivery yields an increase in the customer retention rate of 1%, on average. - TMD Goal Inc.'s current customer retention rate is 70%. - The company estimates that for every 1% increase or decrease in the customer retention rate, market share changes 0.5 in the same direction. - TMD Goal Inc.'s current market share is 19.4%. Ignoring any other factors, if the company has 4 shipping errors this month and an average of 2.5 days from ordered to delivered, determine. a. The new customer retention rate. Round your answer to one decimal place. % b. The new market share that TMD Goal Inc. expects to have. Round your answer to two decimal places. %
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