Application of the Beta Distribution Model to the Customer Churn Rate
The beta distribution model has been applied in many different research environments due to the flexibility of its two parameters. In this research, we fit this probabilistic model for mod- eling a recurring problem confronted for many businesses called the customer churn rate (or churn rate). It r...
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| Format: | Article |
| Language: | English |
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Universidade Federal de Pernambuco (UFPE)
2023-08-01
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| Series: | Socioeconomic Analytics |
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| Online Access: | https://periodicos.ufpe.br/revistas/index.php/SECAN/article/view/259280 |
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| _version_ | 1825201883933835264 |
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| author | Henrique Pinto dos Santos Zaidan |
| author_facet | Henrique Pinto dos Santos Zaidan |
| author_sort | Henrique Pinto dos Santos Zaidan |
| collection | DOAJ |
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The beta distribution model has been applied in many different research environments due to the flexibility of its two parameters. In this research, we fit this probabilistic model for mod- eling a recurring problem confronted for many businesses called the customer churn rate (or churn rate). It represents the proportion of customers who cancel their subscriptions after a given time. We use data from a Brazilian media service company to develop the modeling. The parameters are estimated by the maximum likelihood estimation (MLE) technique. Finally, we perform the MLE technique by considering two programming languages; Ox and R.
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| format | Article |
| id | doaj-art-1f4dc87187a0429eab8e8524dfa15afa |
| institution | Kabale University |
| issn | 2965-4661 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Universidade Federal de Pernambuco (UFPE) |
| record_format | Article |
| series | Socioeconomic Analytics |
| spelling | doaj-art-1f4dc87187a0429eab8e8524dfa15afa2025-02-07T17:43:52ZengUniversidade Federal de Pernambuco (UFPE)Socioeconomic Analytics2965-46612023-08-011110.51359/2965-4661.2023.259280Application of the Beta Distribution Model to the Customer Churn RateHenrique Pinto dos Santos Zaidan0Desktop The beta distribution model has been applied in many different research environments due to the flexibility of its two parameters. In this research, we fit this probabilistic model for mod- eling a recurring problem confronted for many businesses called the customer churn rate (or churn rate). It represents the proportion of customers who cancel their subscriptions after a given time. We use data from a Brazilian media service company to develop the modeling. The parameters are estimated by the maximum likelihood estimation (MLE) technique. Finally, we perform the MLE technique by considering two programming languages; Ox and R. https://periodicos.ufpe.br/revistas/index.php/SECAN/article/view/259280Beta DistributionCostumer Churn Rate; Maximum Likelihood Estimation Ox R |
| spellingShingle | Henrique Pinto dos Santos Zaidan Application of the Beta Distribution Model to the Customer Churn Rate Socioeconomic Analytics Beta Distribution Costumer Churn Rate ; Maximum Likelihood Estimation Ox R |
| title | Application of the Beta Distribution Model to the Customer Churn Rate |
| title_full | Application of the Beta Distribution Model to the Customer Churn Rate |
| title_fullStr | Application of the Beta Distribution Model to the Customer Churn Rate |
| title_full_unstemmed | Application of the Beta Distribution Model to the Customer Churn Rate |
| title_short | Application of the Beta Distribution Model to the Customer Churn Rate |
| title_sort | application of the beta distribution model to the customer churn rate |
| topic | Beta Distribution Costumer Churn Rate ; Maximum Likelihood Estimation Ox R |
| url | https://periodicos.ufpe.br/revistas/index.php/SECAN/article/view/259280 |
| work_keys_str_mv | AT henriquepintodossantoszaidan applicationofthebetadistributionmodeltothecustomerchurnrate |