4/25/25, 11:45 AM Business Intelligence & Analytics - - Unit 7 - Week 4
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1) ____ refers to the process of identifying customers who are at risk of discontinuing 1 point
their service subscription.
Customer retention
Course
outline Customer survival
Customer churn
About NPTEL Customer attrition
() Yes, the answer is correct.
Score: 1
How does an Accepted Answers:
NPTEL online Customer churn
course work?
() 2) What does the "half-life period" in customer behavior refer to? 1 point
Week 1 () The rate at which a business acquires new customers
The time it takes for a customer's behavior to change
Week 2 () The period when customers no longer require any service
The time it takes for a customer segment to lose half of its customers
Week 3 ()
Yes, the answer is correct.
Score: 1
Week 4 ()
Accepted Answers:
The time it takes for a customer segment to lose half of its customers
https://onlinecourses.nptel.ac.in/noc25_cs09/unit?unit=35&assessment=142 1/5
4/25/25, 11:45 AM Business Intelligence & Analytics - - Unit 7 - Week 4
DESCRIPTIVE
3) What is the formula for survival at time S(t) in customer churn analysis? 1 point
DATA
ANALYTICS S(t) = 1 - h(t)
(unit?
unit=35&lesson
S(t) = S(t - 1) * h(t)
=73) S(t) = S(t - 1) * (1 - h(t - 1))
CHURN S(t) = h(t) * (1 - S(t - 1))
ANALYSIS Yes, the answer is correct.
(unit? Score: 1
unit=35&lesson Accepted Answers:
=74) S(t) = S(t - 1) * (1 - h(t - 1))
CUSTOMER
LIFETIME 4) How does hazard impact survival in the context of customer retention? 1 point
VALUE (unit?
unit=35&lesson Survival increases when hazard decreases
=75) Survival decreases when hazard increases
NPV - CLV Hazard has no impact on survival
SPREADSHEE Hazard and survival are directly proportional
T ANALYSIS
(unit?
Yes, the answer is correct.
Score: 1
unit=35&lesson
Accepted Answers:
=76)
Survival decreases when hazard increases
Week 4
Feedback Form 5) What is the purpose of calculating Customer Lifetime Value (CLV) at an individual 1 point
: Business customer level?
Intelligence &
Analytics (unit? To analyze the overall revenue trends of a customer over the course of a year.
unit=35&lesson
To assess the financial value of a customer over their lifetime to the firm
=56)
To estimate the total revenue generated by a customer over time
Lecture notes
To evaluate the contribution of a customer to long-term profitability
(unit?
unit=35&lesson Yes, the answer is correct.
=86) Score: 1
Accepted Answers:
Quiz: Week 4 :
To assess the financial value of a customer over their lifetime to the firm
Assignment
(assessment?
name=142) 6) The calculation of Customer Lifetime Value (CLV) primarily depends on: 1 point
Week 5 () Historical data and past customer behavior
Projected sales data for the next year
Week 6 () Competitor data and market trends
Customer feedback and survey data
Week 7 ()
Yes, the answer is correct.
Score: 1
Week 8 ()
Accepted Answers:
Historical data and past customer behavior
Week 9 ()
https://onlinecourses.nptel.ac.in/noc25_cs09/unit?unit=35&assessment=142 2/5
4/25/25, 11:45 AM Business Intelligence & Analytics - - Unit 7 - Week 4
7) Which following factor is used in the CLV formula to adjust the probability of a customer 1 point
Week 10 ()
remaining active over time?
Week 11 () Customer loyalty rate
Interest rate
Week 12 ()
Survival rate
Download Acquisition cost
Videos () Yes, the answer is correct.
Score: 1
Live session Accepted Answers:
() Survival rate
Text 8) In January 2024, an online magazine platform in India with 100,000 active subscribers 1 point
Transcript () experienced 7,500 cancellations. The platform identifies 18,000 subscribers at risk of cancelling due
to lower engagement with the content and recent pricing changes. What is the hazard probability of
a subscriber cancelling their subscription?
0.35
0.42
0.28
0.58
Yes, the answer is correct.
Score: 1
Accepted Answers:
0.42
9) In customer analytics, which of the following best defines Churn Rate? 1 point
The percentage of customers who upgrade their service
The rate of customers who cancel their subscriptions during a given period
The rate at which new customers are acquired
The percentage of customers who renew their subscriptions
Yes, the answer is correct.
Score: 1
Accepted Answers:
The rate of customers who cancel their subscriptions during a given period
10) How does survival analysis help in customer retention? 1 point
By predicting the future value of a customer
By understanding when a customer is likely to leave or migrate to a new segment
By determining the exact revenue a customer generates
By forecasting the product preferences of customers
Yes, the answer is correct.
https://onlinecourses.nptel.ac.in/noc25_cs09/unit?unit=35&assessment=142 3/5
4/25/25, 11:45 AM Business Intelligence & Analytics - - Unit 7 - Week 4
Score: 1
Accepted Answers:
By understanding when a customer is likely to leave or migrate to a new segment
11) The area under a customer retention curve represents the average customer lifetime 1 point
for the period of time in the curve.
True
False
Yes, the answer is correct.
Score: 1
Accepted Answers:
True
12) Which of the following best describes a bathtub-shaped hazard function? 1 point
A function that exhibits a constant rate of increase or decrease over time.
A function that initially increases, then levels off, and finally declines.
A function that starts high, declines, and then increases again.
A function that fluctuates randomly without a clear trend.
Yes, the answer is correct.
Score: 1
Accepted Answers:
A function that starts high, declines, and then increases again.
13) If a customer has survived until time t, what does the hazard probability at time t 1 point
describe?
The likelihood that the customer will make a purchase between time t and t+1
The risk of the customer leaving before time t+1
The total number of customers remaining at time t+1
The likelihood of the customer upgrading to a new product at time t+1
Yes, the answer is correct.
Score: 1
Accepted Answers:
The risk of the customer leaving before time t+1
14) Which of the following statements is true about the population at risk in the context of 1 point
survival analysis?
The population at risk includes only those customers who have left by time t
The population at risk includes all customers who have been active up until time t
The population at risk includes customers whose tenure is greater than or equal to t, even if
they stopped at time t
The population at risk excludes customers who stopped before time t
No, the answer is incorrect.
https://onlinecourses.nptel.ac.in/noc25_cs09/unit?unit=35&assessment=142 4/5
4/25/25, 11:45 AM Business Intelligence & Analytics - - Unit 7 - Week 4
Score: 0
Accepted Answers:
The population at risk includes customers whose tenure is greater than or equal to t, even if they
stopped at time t
15) Which of the following is a key characteristic of a survival curve compared to a 1 point
retention curve?
The survival curve increases or stays flat over time.
The survival curve is smoother and always decreases, even if it flattens at times.
The survival curve shows fluctuations, just like the retention curve.
The survival curve is based on the number of customers retained at each time point.
Yes, the answer is correct.
Score: 1
Accepted Answers:
The survival curve is smoother and always decreases, even if it flattens at times.
https://onlinecourses.nptel.ac.in/noc25_cs09/unit?unit=35&assessment=142 5/5
