Question 3. What is the best price and maximum profit predicted by the power model assuming the unit cost of product is $250? Hint: You will need to update the model parameters and the formula used to calculate demand on Sheet 2.

Answer:

ISDS 710 Excel Model 5 - Estimating Sensitivity of Demand to Price (1) - Excel Home Insert Page Layout Formulas Data Review View Smart View ? Tell me what you want to do... Calibri 11 - A" A" Wrap Text General EX AutoSum - IN opy Fill - BIU - -D-A- E Merge & Center Conditional Format as Cell Insert Delete Format Sort & ormat Painter Formatting ~ Table - Styles Clear Filter ard Font Alignment Number Styles Cells Editing X LL I N O P R S Exponential: y = qebx The exponential function also represents a curve also represents a curver whose shape depends onb Assuming a is positive... If b > 0, y increases as x increases MAPE If b 1, y increases at an increasing rate as x increases 23 If 0 ) 12/1/2021 DELL