As the Apple Inc.
As the Apple Inc. management group continues to review efforts to improve the efficiency of the firm’s global supply chain, they are also evaluating the possible addition of another personal electronic device to their product portfolio. The product development group has provided data to estimate the demand for the new device and is recommending a price of $375 as it is introduced into the market.
Only a conceptual outline is expected in each question of Part (a).
a) As the data was gathered it was believed there would be value in analyzing the data in both a linear and log-linear format. Regress both of the data sets and outline the processes you would recommend to evaluate the proposed project. How would you determine whether the proposed price is appropriate? What else would you need to analyze to make a recommendation as to whether the company should proceed, withdraw, or make needed revisions before continuing with the project?
b) Are there other factors beyond those outlined that you believe would be useful to know prior to making a decision on proceeding with the project?