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You are in charge of subscriber retention for a music streaming service. A model recently built by the company's data science team has identified 25,000
You are in charge of subscriber retention for a music streaming service. A model recently built by the company's data science team has identified 25,000 subscribers who are at risk of canceling the service. The normal percent of subscribers that cancel in any given month is 10%, but these subscribers are estimated to be 50% like to cancel. Currently these subscribers all pay $10/month, but you can reduce the cancellation rate to the usual 10% if you give all these 25,000 subscribers a special deal of paying only $5 next month. What is the absolute value of the difference between the revenue at $10/month and $5/month
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