Develop a spreadsheet for computing the demand for any values of the input variables in the linear demand and nonlinear demand prediction models in Examples
To develop a spreadsheet for computing the demand for any values if the input variables in the linear demand and nonlinear demand prediction models.
Explanation of Solution
Given:
Linear model is,
And Nonlinear model,
Following is the formulae used in spreadsheet for linear model:
Following is the formulae used in spreadsheet for Nonlinear model:
Following is the output for linear model:
As per calculation, if the price increases then demand decreases.
Following is the output for Nonlinear model:
As per calculation, if the price increases then demand decreases.
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