Attrition Analysis, Revenue Growth, and Customer Mortality
American Society of Appraisers
Business Valuation Review™
Volume 29, Issue 1
Richard K. Ellsworth, PE, ASA
Attrition analysis is a common method used to estimate life characteristics for grouped customer populations when informational deficiencies limit the use of more formal statistical techniques. Attrition analysis studies customer retirement behavior to estimate the mortality profile for the customer population. Attrition data may combine customer mortality and revenue growth information such that a closer examination of the inherent population retirement characteristics is necessary to accurately reflect customer survivor characteristics.
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