derl: Calculate discounted expected residual lifetime

In runtastic/sBGmodel: Estimates the Customer Lifetime Value using the sBG model.

Description

derl computes discounted expected residual lifetime (DERL) for given customer's contract period(s)

Usage

derl(model, period = 1, discount_rate = 0.25)

Arguments

model	a sBG model
period	a vector with period(s) for which DERL should be calculated. (customer has made period-1 renewals). Default is set to 1.
discount_rate	a number between 0 and 1 denoting the discount rate. Default is set to 0.25 (recommended value for private businesses).

Value

a vector with discounted expected residual lifetime per given period

References

http://brucehardie.com/papers/022/fader_hardie_mksc_10.pdf Equation (6)

runtastic/sBGmodel documentation built on Nov. 5, 2019, 4:21 a.m.