Month Price Demand (00s)

1 $ 450 45
2 $ 300 103
3 $ 440 49
4 $ 360 86
5 $ 290 125
6 $ 450 52
7 $ 340 87
8 $ 370 68
9 $ 500 45
10 $ 490 44
11 $ 430 58
12 $ 390 68

Linear : y=mx+b power: y=ax^b exponential : y= ae^(bx)

intercept (b) 211.31 constant a: 5,871,064 constant (a):
slope (m) -0.3546 Exonent b: -1.908 Exponent(b):

Prediction based on models absolute percent error

Price (X) linear power exponential Demand (00s)
$ 450 $ 51.7 $ 50.86 $ 49.2 45
$ 300 $ 104.9 $ 110.25 $ 104.1 103
$ 440 $ 55.3 $ 53.09 $ 51.7 49
$ 360 $ 83.7 $ 77.86 $ 77.1 86
$ 290 $ 108.5 $ 117.61 $ 109.4 125
$ 450 $ 51.7 $ 50.86 $ 49.2 52
$ 340 $ 90.7 $ 86.83 $ 85.2 87
$ 370 $ 80.1 $ 73.89 $ 73.4 68
$ 500 $ 34.0 $ 41.60 $ 38.3 45
$ 490 $ 37.6 $ 43.23 $ 40.3 44
$ 430 $ 58.8 $ 55.47 $ 54.3 58
$ 390 $ 73.0 $ 66.83 $ 66.4 68
absolute mean percent error
model the business
Unit Costs: $ 250 per set of clubs
selling price $ 600 <-- dummy values
demand (00s) 29.38 <-- base on power model =$D$17*$B$37^$D$18
actual demand 2938 =B38*100

Costs: $ 734,420 =B39*B36

Revenue : $ 1,762,607 =B39*B37
profit: $ 1,028,187 =B42-B41

a). Sell at price $530 for maximum profit $ 1.042.213

 unit
$ 1,028,187 250 275 300
$ 260
$ 270
$ 280
$ 290
$ 300
$ 310
$ 320
 $ 330
$ 340
$ 350
$ 360
$ 370
$ 380
$ 390
$ 400
$ 410
$ 420
$ 430
$ 440
$ 450
$ 460
$ 470
$ 480
selling price $ 490
$ 500
$ 510
$ 520
$ 530
$ 540
$ 550
$ 560
$ 570
$ 580
$ 590
$ 600
$ 610
$ 620
$ 630
$ 640
$ 650
$ 660
$ 670
$ 680
$ 690
$ 700
$ 800
$ 900
$ 1,000
MAX PROFIT Rp 1,042,213 Rp 955,864 Rp -
 Price VS Demands
140
120
f(x) = 5871064.20312913 x^-1.90815375508878
100 f(x)
f(x) == 466.510119229519 exp(x +− 211.314674501314
− 0.354631204577084 0.00491060734945113 x )
Demands (00s)

80
60
40
20
0
$250 $300 $350 $400 $450 $500
Price

ntial : y= ae^(bx)
466.51
-0.005

absolute percent error

linear power exponential
15.0% 13.0% 9.3%
1.9% 7.0% 1.1%
12.8% 8.3% 5.5%
2.7% 9.5% 10.3%
13.2% 5.9% 12.5%
0.5% 2.2% 5.4%
4.3% 0.2% 2.0%
17.8% 8.7% 7.9%
24.4% 7.6% 14.9%
14.6% 1.7% 8.5%
1.4% 4.4% 6.3%
7.4% 1.7% 2.4%
9.68% 5.85% 7.2%

PRICE PROFIT
$ 1,028,187
$ 260 $1.028.187
$ 270
$1.00
$ 280
$0.90
$ 290
$0.80
$ 300 $0.70
$ 310 $0.60
$ 320 $0.50
$ 330 $0.40
$ 340 $0.30
$0.20
$0.10
$-
0 0 0 0 0 0 0 0
6 80 0 20 4 60 8
0 00 2
0 40 6
0 8 0
0 2 4
0 6 8
0 0 20 4
 $0.60
$0.50
$0.40
$0.30
$ 350 $0.20
$ 360 $0.10
$ 370 $-
$ 380 6
0
80 0
0
20 4
0
60 0 00 0 40 0 8
0 0 2
0 0 6
0 0 0
0
20 4
0
2 2 3 3 3 3 38 4 42 4 46 4 50 5 54 5 58 6 6 6 6
$ 390 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ 400
$ 410
$ 420
$ 430
$ 440
$ 450
$ 460
$ 470
$ 480
$ 490
$ 500
$ 510
$ 520
$ 530
$ 540
$ 550
$ 560
$ 570
$ 580
$ 590
$ 600
$ 610
$ 620
$ 630
$ 640
$ 650
$ 660
$ 670
$ 680
$ 690
$ 700
$ 800
$ 900
$ 1,000
unit cost per set of clubs
325 350 375 400 425 450
Rp - Rp - Rp - Rp - Rp - Rp -
 $450 $500 $550

28.187

0 0 0 0 0 0 0 0 0
8 0 2 4 6 8 0 20 4 60 8 00 0
0
 0 0 0 0 0 0 0 0 0
8 2 6 0 20 4 60 8 00 0
50 5 54 5 58 6 6 6 6 6 7 90
$ $ $ $ $ $ $ $ $ $ $ $

475 500
Rp - Rp -