A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and the monthly sales. Assume the only factor influencing monthly sales is price. Fit the following three curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best? Interpret your best-fitting equation. Using the best-fitting equation, predict sales during a month in which the price is $470. File data: Price Demand $400 20,000 $420 19,000 $440 17,000 $460 16,000 $500 14,000 $380 22,000 $290 31,000 $340 26,000 $220 41,000 $700 6,000
A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and the monthly sales. Assume the only factor influencing monthly sales is price. Fit the following three curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best? Interpret your best-fitting equation. Using the best-fitting equation, predict sales during a month in which the price is $470. File data: Price Demand $400 20,000 $420 19,000 $440 17,000 $460 16,000 $500 14,000 $380 22,000 $290 31,000 $340 26,000 $220 41,000 $700 6,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and the monthly sales.
- Assume the only factor influencing monthly sales is price. Fit the following three
curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best? - Interpret your best-fitting equation.
- Using the best-fitting equation, predict sales during a month in which the price is $470.
File data:
| Price | Demand |
| $400 | 20,000 |
| $420 | 19,000 |
| $440 | 17,000 |
| $460 | 16,000 |
| $500 | 14,000 |
| $380 | 22,000 |
| $290 | 31,000 |
| $340 | 26,000 |
| $220 | 41,000 |
| $700 | 6,000 |
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