Consider our telco churn example from class. we would like to target some subset of our customers with a brand-new special offer prior to the expiration of their contracts, in order to minimize our losses due to churn. the special offer has a fixed cost of c irrespective of whether the customer accepts it. as we mentioned in class, in a real business application you want to design your solution carefully and specific to the application. you can assume that the value of a particular customer group, if she were to stay, can be estimated directly using this particular customer’s past value and knowledge of the business going forward and the incentive. we would like to see whether our investment customers tend to cluster in understandable groups.

the benefits of raising bc’s minimum wage to $15 through a

series of pre-announced staged increases far outweigh the likely

costs. claims that such an increase will lead to massive job losses

in low-wage sectors of the economy are not credible.

• an increase to $15 would result in some job losses. however,

the likely impact is less than a 1 per cent reduction in the overall

provincial employment rate, and a 7.6 per cent reduction in the

employment rate for those currently making between $10.25

and $15 per hour.

• the large job loss impacts predicted by some opponents of

minimum wages misrepresent the existing economic research. in

reading and using that research, it is important to recognize that

estimates showing job loss effects of minimum wage increases

apply only to teenagers. estimated effects for young adult and

adult workers range from insignificant to non-existent.

• focusing on teenage workers plays up an inaccurate stereotype

about who earns very low wages in bc and leads to exaggerated

claims about job losses. only 26 per cent of those currently making

between $10.25 and $12 are teenagers, and only 5 per cent

of those making between $12 and $15 are teenagers.