Do this in excel monte carlo simulation
As the manager of credit card services at Bank of Hanover (BOH), you’re aware that the average profitability of a credit card customer grows with the number of years they have used the credit card. Two probabilistic factors affect actual profitability. The mean profitability function is given in the table below, which has been gathered from data on BOH customers. The actual profit in a given year follows a normal distribution, with a standard deviation equal to 25 percent of the mean profit.In addition, there is a probability less than one that a customer will continue to use the card during year t. This probability is sometimes called the retention rate. For instance, an 80 percent retention rate means that, during any year, there is a 20 percent chance the customer will cancel their credit card. Assume that if a customer cancels during year t, then the cancellation occurs at the end of the year, and BOH still gets profits from year t. The current retention rate has been estimated at 80 percent.BOH uses a discount rate of 10 percent for calculating net present values.
They have a magnificent team. These people are always kind and willing to listen to your concerns or issues. Better yet, your assignment is always ready before the time, they usually send you a draft to double-check before they finalize your paper.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more