Hi, I have a question regarding determination of "Base Price", particularly on calculating net monthly growth in number of contracts. The answers have assumed that net monthly growth = monthly cancellation rate * monthly growth in number of new contracts. However, I have assumed that net monthly growth = monthly growth in number of new contracts - monthly cancellation rate because I have understood the monthly growth in number of new contracts is based on the number of contracts at the start of the month. The answer seemed to have suggested that the monthly growth in number is based on number after cancellation. Hence, I want to know if either way is possible as long as I have listed down my assumptions. Thanks
CA2 is about articulating (clearly) YOUR methodology / assumptions. I would be surprised if issues of interpretation (such as the one you describe) would cost you more than a mark, if any. You’d get more than those marks back by commenting on the reasonableness of your results. Eg has the number of mobile phones increased? Why / why not and move on.
