Question Details

Note that this discussion is due on Day 6. Although the initial post is due on Day 6, you are encouraged to start working on it early as it includes work in Excel. Prior to beginning work on this assignment, read Chapter 10.

Complete Problem 50 in Chapter 10 on page 477.

10-55) A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and the monthly sales.

1. Assume the only factor influencing monthly sales is price. Fit the following three curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best?
2. Interpret your best-fitting equation.
3. Using the best-fitting equation, predict sales during a month in which the price is $470.

In the discussion area, attach the Excel document showing work.