Cross selling is a major activity at financial institutions.  One regional bank classifies its 100,000 individual customers into 4 groups: a) Basic services (checking, savings accounts), b) Lending (mortgages, loans), c) Investment (mutual funds, bonds), and d) Financial planning (retirement, trusts, comprehensive financial planning).

Customers in each of the four categories generate net (of servicing costs) revenue of $100, $200, $300, and $1,000 per year respectively.  Currently the mix of customers is 70%, 10%, 15%, and 5% in the four types.  Retention rates are 90% across the board.  Retention costs (note: these are different from servicing costs) per account are $80, $120, $150, and $200 respectively per year.  In order to improve performance, three major strategies are under consideration:

Increase net revenue per customer by 10% across the board

Change the customer mix to 60%, 15%, 18%, and 7%

Increase retention in Financial planning group to 95%

1.What is the CLV in each of the current customer categories? (Assume a 10% discount rate)

2.What would be the increase in the bank’s average CLV if each of the three suggested strategies were implemented separately? (assuming servicing costs are constant and same discount rate)

Use the formula for computing CLV

A shoe salesman wants to see if his female customers have a preference in the color of shoe purchased. He notes the color preferences of 100 randomly selected customers. The results: Black=32, Brown=27, Red=15, Navy =13 White =13

Waiting times​ (in minutes) of customers in a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the mean and median for each of the two​ samples, then compare the two sets of results. Single Line 6.5 6.6 6.7 6.8 7.0 7.1 7.5 7.6 7.6 7.6 Individual Lines 4.2 5.4 5.8 6.2 6.5 7.6 7.6 8.6 9.2 9.9 The mean waiting time for customers in a single line is nothing minutes. The median waiting time for customers in a single line is nothing minutes. The mean waiting time for customers in individual lines is nothing minutes. The median waiting time for customers in individual lines is nothing minutes. Determine whether there is a difference between the two data sets that is not apparent from a comparison of the measures of center. If​ so, what is​ it? A. The times for customers in a single line are much more varied than the times for customers in individual lines. B. The times for customers in individual lines are much more varied than the times for customers in a single line. C. There is no difference between the two data sets.

What is the relationship between religion and gdp? List/explain 4 factors that contribute to this.

Journalize the following adjustments.

a) Using the 1949 oil price and the 1969 oil price, compute the annual growth rate in oil prices during the 20 yr period. b) Compute the growth rate between 1969 & 1989 and between 1989 & 2017. c) given the price in 2017 and your growth rate between 1989 and 2017 compute the future price of oil in 2020 & 2025.

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets Cash $ 37 $ 22 Accounts receivable 46 51 Less: Allowance for uncollectible accounts (4 ) (3 ) Dividends receivable 6 5 Inventory 59 52 Long-term investment 19 12 Land 74 42 Buildings and equipment 223 254 Less: Accumulated depreciation (27 ) (54 ) $ 433 $ 381 Liabilities Accounts payable $ 15 $ 24 Salaries payable 6 8 Interest payable 8 6 Income tax payable 9 11 Notes payable 32 0 Bonds payable 99 72 Less: Discount on bonds (4 ) (7 ) Shareholders' Equity Common stock 212 202 Paid-in capital—excess of par 23 22 Retained earnings 43 43 Less: Treasury stock (10 ) 0 $ 433 $ 381 DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue $ 217 Dividend revenue 5 $ 222 Expenses Cost of goods sold 122 Salaries expense 27 Depreciation expense 9 Bad debt expense 1 Interest expense 10 Loss on sale of building 7 Income tax expense 19 195 Net income $ 27 Additional information from the accounting records: A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $5,000. The common stock of Byrd Corporation was purchased for $7,000 as a long-term investment. Property was acquired by issuing a 12%, seven-year, $32,000 note payable to the seller. New equipment was purchased for $17,000 cash. On January 1, 2018, bonds were sold at their $27,000 face value. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $11 per share at that time. Cash dividends of $16,000 were paid to shareholders. On November 20,000 shares of common stock were repurchased as treasury stock at a cost of $10,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).))

What three kinds of illicit drugs are used most commonly by persons aged 12 and older, according to 2006 data? Can you suggest any methods for prevention of illegal substance use among young people?

1. Consider the following game: 3 players can contribute or not to a public good. For the public good to be successfully created, 2 contributions are necessary (a third contribution would not add anything to the public good).
   These are the payoffs each of the three players assign to all possible outcomes:

   3: I didn't contribute but the public good was created anyway 2: I did contribute and the public good was created
   1: I didn't contribute and the public good was not created
   0: I did contribute and the public good was not created

   The decisions are made sequentially: player 1 moves, then player 2, then player 3.

   (a) Find the set of pure strategy Nash equilibria of this game if it is played as a simultaneous move game.

   (b) Find the set of subgame perfect Nash equilibria of this game when it is played sequentially.