What Is the Likelihood That Stephen Will Still Be Active in 2020 - Statistics Assignment Help

Assignment Task

1. Your current price for product X is $10 and the corresponding sales are 1000 units. If you increase your price by $0.10 (1%), your sales will decrease by 20 units (2%). Based on the definition of price elasticity, what is the absolute value of the price elasticity here? 
Select one:

a. 1E1 = 0.01

b. 1E1 = 0.02

c. 1E1 = 1

d. 1E1 = 2 

2. We know that Stephen has a 80% chance to be active in 2018, and the yearly retention rate is 90% (i.e., the likelihood to be active in the next year given a customer is active in a particular year is 90%). What is the likelihood that Stephen will still be active in 2020 (choose the closest number)? 
Select one:

a. 80% 

b. 75%

c. 70%

d. 65%

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