hard20 pts · first answer countssurvival-analysis

Average lifetime with active customers

To estimate average customer lifetime, an analyst averages tenure only for customers who have already cancelled, ignoring those still active. What is wrong and what should be used?

A.Nothing; active customers have no lifetime yetB.Active customers are right-censored, so dropping them underestimates lifetime; use survival methods such as Kaplan-MeierC.Tenure should be log-transformed before averagingD.Active customers should be counted as cancelling today

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Average lifetime with active customers

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