Question: 2 . 1 0 . In this exercise we consider variations of the situation in Exercise 2 . 8 . ( a ) Suppose that

2.10. In this exercise we consider variations of the situation in Exercise 2.8.
(a) Suppose that the product only keeps customers active for an average of 4
days instead of 20. Will a product bust occur?
(b) Suppose, in addition to the change in b, that a=0.00005. Now will a
product bust occur?
(c) In an SIR model where S(0)=40,000 and b=114, how big does a need
to be to avoid a product bust?
(d) In a product bust, are there any new customers? Explain.
2.11.(a) Construct a SIR model for a product that keeps people's interest for an
average of 20 days, where an average potential customer meets about 0.01%
of the active population each day, and where it takes eight contacts with
an Active before a Potential becomes Active.
(b) How many Potentials are needed to avoid a product bust?
2.12. One way to create more interest in a product is to provide rewards for Actives
who refer Potentials. By creating an incentive for Actives to reach out to Poten-
tials, a reward program can increase the transmission coefficient.
(a) Suppose, in the setting of Exercise 2.9, that a reward program is put into
effect that doubles the chance that a Potential will become Active. What
is the new transmission coefficient?
(b) Compute the new threshold if the reward program in part (a) is put into
effect, and compare it to the original threshold in Exercise 2.9.
(c) Suppose that, for a different product, S(0)=20,000,b=114, and a=
0.000003. In order to be profitable, this product must have a threshold
under 15,000. Will this product be profitable?
(d) Suppose that, for the product in part (c), the company initiates a reward
program, hoping to bring the threshold under 10,000. By what factor must
the reward program alter the transmission coefficient to achieve this goal?
2.13. Consider two products with the same transmission coefficient a and the same
initial conditions. They differ only in the average length of time that someone
stays Active. Which product has the higher threshold level: the one with the
higher average usage time or the lower average usage time? Explain.
 2.10. In this exercise we consider variations of the situation in

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