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Innovation and imitation parameters of a bass diffusion

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Reference no: EM132908635

Consider the yearly sales data for color TVs for 16 years.

  1. Use the data to determine the innovation and imitation parameters of a Bass diffusion model for color TVs. 

Hughes TV is planning to launch satellite television in US markets. Their market research suggests that subscriptions for satellite television is expected to follow the bass diffusion model and would have a similar pattern to that of color TVs. Additionally, their forecast predicts that the first year subscription would total 1.32 mn households. 

  1. How can Hughes TV utilize this information to forecast subscription of Satellite television for the first 4 years. (A descriptive answer would suffice for the submission)
  2. Given the analysis above, what is the maximum capacity that Hughes should be planning for? By what time should this capacity be available?

Data is here: https://docs.google.com/spreadsheets/d/11W7wHx13i2Qew4ekGEQVujgN1HklKgRMY_V9ArtDz48/edit?usp=sharing

Reference no: EM132908635

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