Your major online bookstore is in direct competition with Amazon.com. BN.com, and BooksAMillion.com. Your company's daily revenue
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Question:
Your major online bookstore is in direct competition with Amazon.com. BN.com, and BooksAMillion.com. Your company's daily revenue in dollars is given by
R(x, y, z) = 10,000 - 0.01x - 0.02y - 0.01z + 0.00001yz,
where x, y, and z are the online daily revenues of Amazon .com, BN.com, and BooksAMillion.com, respectively.
a. If, on a certain day, Amazon.com shows revenue of $12,000, while BN.com and BooksAMillion.com each show $5,000, what does the model predict for your company's revenue that day?
b. If Amazon.com and BN.com each show daily revenue of $5,000, give an equation showing how your daily revenue depends on that of BooksAMillion.com.
Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
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