Your group works for the CFO of the Higgs Corporation, the cellphone company whose database you have worked with in Excel Parts 1-3, and the CEO has asked the CFO for her opinion on a number of his business ideas. You are to advise the CFO about how to best answer the CEO's questions and proposals using you Excel wizardry and FIN 301 skills.

(It might help to re-read the first page or two of the Excel instructions -- the part that goes over the background of the fictional company, Higgs Corp., for our fictional data.)

To get any credit for Part 3, please provide me with a short write-up of your advice for the CFO and your reasoning for each answer (anywhere between 4-5 sentences ) and any Excel work you used to develop your reasoning.

1)Your CEO has been out on the road talking to clients, and it sounds like one or two of the customers with commercial accounts (i.e. accounts with higher premiums than typical levels, usually in the thousands of dollars) have been complaining a bit about their interactions with your company's commercial account managers.Because of this, your CEO is worried that the commercial customers have been cancelling at high levels when compared with non-commercial or "normal" customers.Unfortunately, your company doesn't have any kind of report that breaks out cancellation rates by normal vs. commercial customers. Can you quickly put something together that can tell the CEO whether or not he should be worried about commercial customers cancelling more often than normal customers? (1.5 points)

2)The CEO has decided to start a direct mail program to try and prevent current customers from cancelling their policies.Each piece of direct mail costs the company $5 (these are very fancy pieces of mail), and the direct mail campaign is likely to result in about 10% fewer cancelling customers. However, you don't know in advance which customers are going to cancel, so the CEO wants to send the mail to everybody. Using data from the state of Minnesota, can you tell the CEO whether this is this a smart use of money in the current year and beyond?Instead of blanketing all of your customers with direct mail, can you think of a smarter way to maximize the value of this "customer-saving" mail campaign? (2 points)