Question
Assume the forecasted values for the variables inc_per_capita and pro_exp for Jan-2024 are $7,733 and $1,236, respectively. The forecasted value for the average price of
Assume the forecasted values for the variables inc_per_capita and pro_exp for Jan-2024 are $7,733 and $1,236, respectively. The forecasted value for the average price of competitors for December is $99.14, derived from the data of the last four years. The average price of SHO for December over the same period is $84.93. SHO is contemplating three scenarios: when compe_price is higher than the average, equal to the average, and lower than the average. Utilizing Model D, compute the estimated revenue for SHO in each scenario, reflecting different strategies.
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