Resumen de Application of the Beta Distribution Model to the Customer Churn Rate

Henrique Pinto dos Santos Zaidan

• The beta distribution model has been applied in many different research environments due to the flexibility of its two parameters. In this research, we fit this probabilistic model for mod- eling a recurring problem confronted for many businesses called the customer churn rate (or churn rate). It represents the proportion of customers who cancel their subscriptions after a given time. We use data from a Brazilian media service company to develop the modeling. The parameters are estimated by the maximum likelihood estimation (MLE) technique. Finally, we perform the MLE technique by considering two programming languages; Ox and R.