Great article but even this article contains some minor nitpicky inaccuracies in modeling churn.
The Lomax distribution (sometimes described as the gamma-exponential) would only be appropriate if we're modeling a continuous time process.
For a contractual product with discrete time intervals (aka monthly contract), it would be more accurate to use a geometric rather than exponential model such as the Beta-Geometric.
The Lomax distribution (sometimes described as the gamma-exponential) would only be appropriate if we're modeling a continuous time process.
For a contractual product with discrete time intervals (aka monthly contract), it would be more accurate to use a geometric rather than exponential model such as the Beta-Geometric.