Subjects business analytics

Churn Variance Da9240

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Churn Variance Da9240


1. **State the problem:** Calculate the year-on-year churn variance in absolute and percentage terms given April 2024 churn = $-1741$ and April 2025 churn = $-2083$. 2. **Formula for absolute variance:** $$\text{Absolute Variance} = \text{Churn}_{2025} - \text{Churn}_{2024}$$ 3. **Calculate absolute variance:** $$-2083 - (-1741) = -2083 + 1741 = -342$$ 4. **Formula for percentage variance:** $$\text{Percentage Variance} = \frac{\text{Absolute Variance}}{|\text{Churn}_{2024}|} \times 100$$ 5. **Calculate percentage variance:** $$\frac{-342}{1741} \times 100 \approx -19.64\%$$ 6. **Interpretation:** The churn increased by 342 in absolute terms (became more negative), which is a 19.64% increase in churn magnitude year-on-year. **Final answers:** - Absolute variance = $-342$ - Percentage variance = $-19.64\%$