{"id":272947,"date":"2025-07-27T08:02:03","date_gmt":"2025-07-27T08:02:03","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=272947"},"modified":"2025-07-27T08:02:06","modified_gmt":"2025-07-27T08:02:06","slug":"1-in-8-customers-will-not-renew-their-contract-after-1-year","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/07\/27\/1-in-8-customers-will-not-renew-their-contract-after-1-year\/","title":{"rendered":"1 in 8 customers will not renew their contract after 1 year"},"content":{"rendered":"\n

1 in 8 customers will not renew their contract after 1 year.
If you attract 720 new customers this year, how many of them will, on average, cancel their contract next year?
720 x (1\/9)
720\/8
720-(720\/9)
720-(720\/8)
720\/9<\/p>\n\n\n\n

The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n

The correct answer is: 720 – (720 \/ 8)<\/strong>.<\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

You are given that 1 in 8 customers will not renew their contract after 1 year. This means that the proportion of customers who will cancel their contract is 1\/8<\/strong>.<\/p>\n\n\n\n

To find how many of the 720 new customers will cancel, you need to calculate the number of customers who will cancel by using the following formula:<\/p>\n\n\n\n

    \n
  1. Find the number of customers who will cancel<\/strong>: You need to calculate 1\/8 of the 720 customers.
    • To do this, you divide 720 by 8:<\/li><\/ul>720\/8=90720 \/ 8 = 90<\/li>\n\n\n\n
    • Calculate the number of customers who will stay<\/strong>: Since 90 customers will cancel, the remaining customers will stay. To find how many will stay, you subtract the number of customers who will cancel (90) from the total number of customers (720). 720\u221290=630720 – 90 = 630<\/li>\n<\/ol>\n\n\n\n

      So, 90<\/strong> customers will cancel their contract next year.<\/p>\n\n\n\n

      Why not the other options?<\/h3>\n\n\n\n
        \n
      • 720 x (1\/9)<\/strong>: This would be incorrect because you’re told that 1 in 8 customers will not renew their contract, not 1 in 9.<\/li>\n\n\n\n
      • 720 \/ 8<\/strong>: This is the correct calculation for how many customers will cancel, but it only tells you how many will cancel, not how many will stay.<\/li>\n\n\n\n
      • 720 – (720 \/ 9)<\/strong>: This is incorrect because you’re using the wrong fraction (1\/9) for the cancellation rate.<\/li>\n\n\n\n
      • 720 – (720 \/ 8)<\/strong>: This is the correct method to find the number of customers who will stay, after subtracting the 90 customers who will cancel.<\/li>\n<\/ul>\n\n\n\n

        In conclusion, the number of customers who will cancel their contract next year is 90<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

        1 in 8 customers will not renew their contract after 1 year.If you attract 720 new customers this year, how many of them will, on average, cancel their contract next year?720 x (1\/9)720\/8720-(720\/9)720-(720\/8)720\/9 The correct answer and explanation is: The correct answer is: 720 – (720 \/ 8). Explanation: You are given that 1 in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-272947","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/272947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=272947"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/272947\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=272947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=272947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=272947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}