Problem Statement

A mobile carrier has 80 million subscribers as of Jan 1st, 2018. Currently, 70% of the subscribers have insurance. Monthly fees for the insurance: $5; Monthly fee for phone service: $30. Subscriber churn (attrition) rate: 2.8% per month without insurance; 2.5% per month with insurance. Assume no new customers are added. Suppose instead the starting share of insured subscribers had been 25% of the carrier's subscribers, rather than a 0%-insurance baseline — what extra monthly revenue would that produce by the 2nd month (Feb 2018)? $11.4m $9.9m $12.2m $12m A ride sharing company in Kerala has a rate card: SUV (Service charge: Rs. 200, 0-10 KM fixed: Rs. 300, >10 KM: Rs. 50/km); Sedan (Service charge: Rs. 150, 0-10 KM fixed: Rs. 250, >10 KM: Rs. 40/km). There are 1,000,000 customers in Kerala. On average, customers make 2 trips per month and travel 15 km per trip. 20% use SUV and 80% use Sedan. Given our client holds a 10% slice of this market, what annual revenue does that translat