Lifetime Value

SuzMath1

New member
Joined
Apr 27, 2019
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2
I'm trying to figure this out for business. Can someone show how to figure it out?:

90% of my customers have a lifetime value of $46.
10% of my customers have a lifetime value of $1000.

What is the average lifetime value of my customers?
 
Hello, and welcome to FMH! :)

I would use a weighted average to state:

[MATH]\overline{x}=0.9\cdot46+0.1\cdot1000=[/MATH] ?
 
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