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A firm is developing a new product. An early introduction (beating rivals to market) would greatly enhance the company's revenues. However, the intensive development effort needed to expedite the introduction can be very expensive. Revenues and costs associated with the new product are given by:
R = 720 - 12t
and
C = 600 - 20t + 0.2t2
where t is the introduction date (in months from now). Some executives have argued for an expedited introduction date, 15 months from now (t = 15). Do you agree? What introduction date would you recommend?
According to the United States informationfor 1965-IQ to 1983-IQ (n=76), James and Adibi obtained the folowwing regression to explain personal consumption expenditure in the United States
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A multiplicative demand function form: Qd= a*P^b1*Y^b2*Po^b3 is determine using cross sectional data and 224 observations. The regression results were given below:
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