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:PriceDemand$40020,000$42019,000$44017,000$46016,000$50014,000$38022,000$29031,000$34026,000$22041,000$7006,000

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Answered: A golf club manufacturer is trying to…

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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