Jean owns a printing company. She had 100 customers at the end of the third quarter, 101 customers at the beginning of the third quarter, and five new customers in the third quarter. What is her customer retention rate for the third quarter?

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Multiple Choice

Jean owns a printing company. She had 100 customers at the end of the third quarter, 101 customers at the beginning of the third quarter, and five new customers in the third quarter. What is her customer retention rate for the third quarter?

Explanation:
Retention rate is the share of customers who remained from the start to the end of the period, ignoring new customers added during the period. Start with 101 customers, and five new customers joined during the quarter, with 100 customers at the end. The number retained from the original group is end minus new: 100 − 5 = 95. So the retention rate is 95 out of 101, which equals 95/101 ≈ 0.9406, about 94%.

Retention rate is the share of customers who remained from the start to the end of the period, ignoring new customers added during the period. Start with 101 customers, and five new customers joined during the quarter, with 100 customers at the end. The number retained from the original group is end minus new: 100 − 5 = 95. So the retention rate is 95 out of 101, which equals 95/101 ≈ 0.9406, about 94%.

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