# Geometric Distribution
>[!Abstract] The Geometric Distribution, is a form of [[Probability Distributions]] takes the following form:
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>$ P(X = x) = (1-p)^{x-1} p $
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>This distribution is a special case of the negative [[Binomial Distribution]] and represents the probability of the number of Bernoulli trials needed before the first success. In the above formula $p$ is the probability of success
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>![[geom_distribution.png]]
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The geometric distribution is used to calculate [[Customer Lifetime Value — Survival Analysis|customer lifetime]] given customer churn rate that is constant over time. The quesiton is how many months it would take for the customer to churn?
- The average customer lifetime is the expectation of the geometric distribution i.e. $1/c$
- On average, it takes $1/c$ months for a customer to churn
- If c = 10% -> average customer lifetime is 10 months
- If c = 20% -> average custoemr lifetime is 5 months