a) Identify the top three trendline methods among Exponential, Linear, Logarithmic, Polynomial (with order 6), Power, and

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Question:

a) Identify the top three trendline methods among Exponential, Linear, Logarithmic, Polynomial (with order 6), Power, and Moving Average (with period 2). You can simply use the plots to identify these methods here.

b) Compare the three methods that you have identified in part (a) above using MAPE and find the best method.

c) Top-down selling tactic is initially offering high-priced items to a customer to pull WTP (reference price) up regardless of whether the customer is interested in or is able to afford these high-priced items. Suppose that you are a) a real estate agent selling houses, b) a mail catalog designer for a blouse company, c) a Wal-Mart store employee stocking pasta shelves, how would you implement the top-down selling tactic?

d) When the apartment rental market cools down, the apartment owners think of reducing the rental prices either directly or indirectly to stimulate the demand. Direct reduction is simply reducing the annual rent. One of the indirect reduction strategies is keeping the rent constant but not charging any the rent for the first month of a 12-month lease (also called free first-month). Among these two strategies, which one keeps the reference price higher? Explain. Is it in the interest of the apartment owners to keep the reference price higher?