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The Fitness health club offers "no commitments" membership: Customers pay on a month-by-month basis and can cancel their membership at any time. At the time of cancellation they are refunded the prorated fee for any remaining days in their monthly membership. Every month an average of 80 new members sign-up for the plan. Only 30% of those joining on any given month keep their memberships for a whole year.
(1) Of the total number of active club members, on average how many keep their memberships for exactly one year?
(2) The average number of active club members on any given day is 420. The club estimates that of these, the average number of customers who keep their memberships for one year or longer is 291. Consider the members who will drop-out before their rst year. On average, how long (in months) do these members stay in the program?
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