Final answer:
Frequent flyer programs reward participants with points or miles that can be redeemed for various benefits, with considerations such as reward value and redemption restrictions. High credit card expenditures often correlate with the use of cards that offer travel miles, but their independence as events requires further analysis.
Step-by-step explanation:
Frequent flyer programs are loyalty schemes operated by airlines to reward participants for their patronage. Individuals earn points or miles for every flight taken or dollar spent with the airline and its partners, typically including certain credit card expenditures. After accumulating a sufficient number of miles, participants can redeem them for various rewards such as free flights, upgrades, hotel stays, car rentals, or other products and services.
One key consideration is the value of rewards compared to the amount spent. Some frequent flyer programs offer more lucrative rewards than others, which can influence customer loyalty. Another important aspect is the restrictions and blackout dates that may limit the availability of reward flights or upgrades. Participants in these programs should be aware of these factors when deciding which frequent flyer program to join and how to accumulate and redeem miles.
The poll mentioned indicates a correlation between high credit card expenditures and the usage of cards offering travel miles. Specifically, 80 percent of those charging more than $2,000 per month are using such cards. However, whether using a credit card for miles and charging over $2,000 are independent events can be determined by analyzing if the probability of one event is affected by the occurrence of the other.