We want to calculate the average lifetime of our customers. For each customer we know when they joined, whether they are still with us and if not, what date they left us. How can this be calculated?

skilmarka8j

skilmarka8j

Answered question

2022-09-23

We want to calculate the average lifetime of our customers. For each customer we know when they joined, whether they are still with us and if not, what date they left us. How can this be calculated?

Answer & Explanation

June Rowland

June Rowland

Beginner2022-09-24Added 6 answers

Weighted average:
Compute the distribution of the amounts of customers by the lifespans (values from the "Customers" field, divided by their total sum).
Compute the mean of this distribution (multiply each of the values by corresponding lifespans, and sum the products up).
In other words: multiply the "Customers" and "Lifespan" columns pairwise, add the values together, and divide the sum by the total amount of customers.

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