1. Suppose you are at the time when eBooks are about to be launched to the market. The Bass Model parameters for eBook annual adoption are p = 0.0395, q = 0.556, M = 21 million.

(1) Plot adoptions of eBooks, N (t), as a function of time for this new product for 30 years. Report N(t) for the first five years.

(2) What is the predicted peak time of adoption for eBooks? How many adoptions will occur for eBooks during its peak time of adoption? Furthermore, suppose each adopter of eBooks will purchase 4 electronic books per year after becoming an adopter of eBooks.

(3) Plot sales of electronic books, S (t), as a function of time for this new product for 30 years. Report S(t) for the first five years. [Hint: use the sales decomposition equation S(t)=N(t)+α*A(t-1).]

(4) How does the plot above differ from the plot in question (1)? Why does the difference occur?

Answer rating: 100% (QA)

solution 1 The formula for Nt the cumulative number of adopters at time t is Nt M frac1 ep qt1 qpep ... View the full answer