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.
Chapter5: Network Models
Section: Chapter Questions
Problem 81P
Related questions
Question
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 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,