Sales of a product over time often follow an S-shaped curve. Two functions that yield S-shaped curves
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Sales of a product over time often follow an S-shaped curve. Two functions that yield S-shaped curves are the Pearl (or logistic) curve
and the Gompertz curve
Y = Le–be–kt
Here, Y is annual sales, t is time (in years), L is the upper limit on sales, and a, b, and k are parameters to be estimated. (Actually, L must also be estimated. And in case the last exponent in the Gompertz curve is too small for you to read, it is –kt.) The file P08_12.xlsx contains data for sales of a new device. Use Evolutionary Solver to fit a Pearl and a Gompertz curve to these data. Let t = 0 correspond to year 1. Which curve provides the better fit?
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Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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