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You have a new product. You have to decide on which seeling price ($3 or $4) to charge. The demand (units in million) for each
| You have a new product. You have to decide on which seeling price ($3 or $4) to charge. The demand (units in million) for each price and probability distribution is as follows: | ||||||
| price | $3 | $4 | ||||
| probability of dd (units) | ||||||
| 0.1 | 160 m units | 60 m units | ||||
| 0.2 | 200 | 170 | ||||
| 0.3 | 280 | 260 | ||||
| 0.4 | 400 | 330 | ||||
| which price should you charge and why? | ||||||
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Financial Econometrics
Authors: Peijie Wang
1st Edition
0415426693, 978-0415426695
