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 establlshed 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:

Should Foster charge $$75$ per hour?

$$

Briefly explain why Foster might be wise to employ descriptive data analytics before moving forward with his priding 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 elther dients or competing accounting firms to share their bills with him to obtain the data necessary to

$$ Jestimate the markup percentages in his area.

accurately

loosely