Quandaries & Queries - Math Central

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Question from Chris:

I'm having a problem working out the percentage target achievement, when i'm
calculating a descending indicator. For example, if you take something like
the number of contracts cancelled. You might give your retentions team the task
to make sure that no more than 2 customers cancel a contract within a particular
month. If exactly 2 customers cancel their contract, that should represent 100%
achievement of the target, but i'm really struggling to work out what that percentage
would be if 1 or 3 customers cancelled.

Chris

Hi Chris,

Isn't it a good thing if less than 2 customers cancel in a month? As I see it, is 0, 1 or 2 contracts are cancelled that constitutes as 100% achievement of that target. As for the percentage of achievement for anything greater than 2, it would depend on the number of contracts:

Here a is the total number of contracts, b is the number of cancelled contracts and the 2 represents the maximum allowable cancelled contracts. If you want to give someone who has less then 2 cancelled contracts an achievement percentage greater than 100%, this formula will work as well.

Hope this helps,

Janice







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