Question

The command `sample(x,size=n,replace=TRUE)` picks n elements from the vector `x` at random with replacement (the same element can be picked twice). Imagine that over a customer's lifetime they make either 1, 2, ..., or 10 purchases (for all intents and purposes the value can be considered to be picked at random). Each purchase results in the customer spending either 5, 5.5, 6, 6.5, ..., or 20 dollars (for all intents and purposes the value can be considered to be picked at random). Using a `for` loop, generate the lifetime values (total spent) of 50000 customers and put them in a vector called `lifetimevalue`. Include a histogram of the values with `hist(lifetimevalue,breaks=seq(from=0,to=max(lifetimevalue)+5,by=5))` (this makes bars of width 5 starting at 0), the output of `summary`, and the overall average lifetime value in your writeup. You'll want to follow best practices for writing `for` loops to get this right!

Answer 1

To generate the lifetime values of 50000 customers, a for loop and the sample() function in R can be used. The total spent for each customer can be calculated by multiplying the selected purchase and price. The values can be stored in a vector, and a histogram, summary statistics, and average lifetime value can be calculated.

Step-by-step explanation:

To generate the lifetime values of 50000 customers, we can use a for loop and the sample() function in R. First, we need to create a vector of possible purchases and a vector of possible prices. We can then use the sample() function within a for loop to randomly select a purchase and price for each customer.

The total spent for each customer can be calculated by multiplying the selected purchase and price. These values can be stored in a vector called lifetimevalue. Finally, we can create a histogram of the values using the hist() function and calculate the summary statistics and average lifetime value.