Basics of Demand, Life$-$Cycle Pricing

Foster Hancock is an accountant who is planning to open an accounting firm in his hometown. He has heard that established accountants in town charge $$65$ per hour. That amount sounds good to Foster. In fact, he believes that he should be able to charge $$75$ an hour given his high GPA and the fact that he is up to date on current accounting issues.

Required:

$1.$ Should Foster charge $$75$ per hour?

$2.$ Briefly explain why Foster might be wise to employ descriptive data analytics before moving forward with his pricing decision. Also, what, if any, data challenges might Foster encounter in performing descriptive data analytics? $($See Exhibits $2\mathrm{.}5$ and $2\mathrm{.}6,$ for a review of data analytics types.$)$

The data necessary for such data analytics

difficult to obtain as Foster likely

need to convince either clients or competing accounting firms to share their bills with him to obtain the data necessary to

estimate the markup percentages in his area.