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I have someone questioning the maths behind some figures that are provided in a report.

I never wrote the report but I can work out how the previous creator came to the figures that they have.

We are calculating Renewal Retention on a policy/subscription whatever you want to call it.

This done on a month to month basis. The report states the current forecasted retention is $46.27 \%$ and the current total retention is $45.86 \%$, these figures seem close together considering theirs still 10 days left of the month.

In my mind I can get the forecasted retention thus:

Over the entire month:

$881$ Available to Renew

$404$ Renewed

However I calculate by taking the total available to renew in the current period so from the beginning of the month until present day

$616$ Cases Available To Renew in that period

I then do the same and take the Total Number Renewed in the current period

$285$ Cases.

I then divide $\frac{285}{616 \times 100}$ to provide $46.27 \%$ forecasted retention.

Am I wrong here? I don't claim to be any good at maths, in fact I did terrible in my school exams.

saulspatz
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Lynchie
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  • Your arithmetic is right. It's unlikely to be a coincidence that you have duplicated the report writer's results. Is that what you are asking? – saulspatz May 21 '19 at 12:53
  • @saulspatz - Pretty much I felt like both of us couldn't be making the same mistake, however I have a member of a department adamant that it can't be correct, just didn't want to stand my ground and have egg on my face. – Lynchie May 21 '19 at 12:54
  • I'm still not sure what you're asking. When this person says it can't be "correct", if he means that that was not the calculation that was done, I think he's almost certainly wrong. If he means that the calculation is not appropriate, then that's another matter. – saulspatz May 21 '19 at 13:05
  • @saulspatz - They are saying the retention figure is not correct and so the way I must be calculating the retention is incorrect. However they can neither give me what they feel it should be by their own methods and neither do I think they can as I feel the math is sound. – Lynchie May 21 '19 at 13:26
  • What you are doing seems reasonable to me. – saulspatz May 21 '19 at 13:55

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