Question should be solved on EXCEL. I have a solution document for a very similar problem to this question, if you can send me an e-mail at erogluzeynep88 @ g m a i l . c o m , I can send the excel file directly.

2. A grocery store manager wants segmented pricing for their famous Rotisserie Chicken based on when the customers arrive at the store. For the store, the peak time is from 5 pm to 7 pm and the rest of the working hours of the store is considered as non-peak. She thinks that the price response function is logit and the parameters from regression on the following d(p) is as given below. Assume that the market share, D= 300, and the demand response function is logit given by: d(p) = D e(a+bp) 1+ela+bp) A in D-d(p) d(p) === -(a + bp) Table: The regression output for non-peak hours Coefficientsandard Erre t Stat P-value Lower 95%Upper 95%ower 95.09 pper 95.0% Intercept -19.0263 2.377022 -8.00426 1.88E-10 -23.8031 -14.2495 -23.8031 -14.2495 Price 3.275446 0.358847 9.127685 3.81E-12 2.554315 3.996576 2.554315 3.996576 Table: The regression output for peak hours Coefficientsandard Err t Stat P-value Lower 95%Upper 95%ower 95.0%pper 95.0% Intercept -13.841 6.755333 -2.04891 0.047613 -27.5287 -0.15344 -27.5287 -0.15344 Price 2.484616 0.952046 2.609764 0.013001 0.555587 4.413645 0.555587 4.413645 She wants to price the chicken at least $6.85 ($6.85 and above) from 5 pm to 7 pm. Assuming 5 that the store has a maximum capacity to produce 50 rotisserie chickens every day, compute the optimal price at 5 pm to 7 pm