Price elasticity
 

I have a data set with volume numbers at certain price points. I want to use
the data to determine what might be the outcome at different prices. For
instance:

At $.99 per lb, the average lb sold is 100,000 lbs.
At $1.29, per lb, lbs sold is about 77,000 lbs.
And on. What I am trying to figure out is how much I could expect to sell at
price points where I have no history of sales. Please tell me there is an
easy, uncomplicated way to do this. I am not a statistician.

Price elasticity
 

I'm not a stat person either. But I put .99 in B1 and .01 in C1. In B2
=B1+$C$1 and pulled down until I had 1.29. Row 31.

In E1 I entered 100,000. In F1 742, (approx the value of 100000 - 77000
divided by 31)

In E2 =E1-$F$1 and pulled down to row 31. I adjusted F1 until E31 equalled
77,020.

Just a linear chart that says at 1.13 = 89,276, at 1.05 = 95,405, etc.
Basically 766 pound per penny.

HTH
Regards,
Howard

"Price Elasticity" <Price wrote in
message ...
I have a data set with volume numbers at certain price points. I want to
use
the data to determine what might be the outcome at different prices. For
instance:

At $.99 per lb, the average lb sold is 100,000 lbs.
At $1.29, per lb, lbs sold is about 77,000 lbs.
And on. What I am trying to figure out is how much I could expect to sell
at
price points where I have no history of sales. Please tell me there is an
easy, uncomplicated way to do this. I am not a statistician.

Price elasticity
 

L. Howard Kittle wrote...
I'm not a stat person either. But I put .99 in B1 and .01 in C1. In B2
=B1+$C$1 and pulled down until I had 1.29. Row 31.

So far, so good, but arguably cleaner to make the B2 formula =B1+0.01,
then fill down.

In E1 I entered 100,000. In F1 742, (approx the value of 100000 - 77000
divided by 31)
....

Now not so good. Just enter 100000 in C1 and 77000 in C31, select
C1:C31, run the menu command Edit Fill Series, select Linear as
Type and click OK.

But there are no guarantees the demand curve is even approximately
linear.

Price elasticity
 

Hi Harlan,

But there are no guarantees the demand curve is even approximately
linear

I guessed that was the case but didn't know. What I do "kinda guarantee"
is, if you are a non pro at Excel and lurk about in this news group and pay
attention, you will pick up tips and gain knowledge. Which I just did with
your critique of my offered solution. Never heard of "linear" fill until
now. And the .01 in a separate cell does not make sense in retrospect. I
did that because I had some vague thought of changing the increment for the
B column. Point well taken.

Thanks Harlan,
Regards,
Howard

"Harlan Grove" wrote in message
ups.com...
L. Howard Kittle wrote...
I'm not a stat person either. But I put .99 in B1 and .01 in C1. In B2
=B1+$C$1 and pulled down until I had 1.29. Row 31.

So far, so good, but arguably cleaner to make the B2 formula =B1+0.01,
then fill down.

In E1 I entered 100,000. In F1 742, (approx the value of 100000 - 77000
divided by 31)
...

Now not so good. Just enter 100000 in C1 and 77000 in C31, select
C1:C31, run the menu command Edit Fill Series, select Linear as
Type and click OK.

But there are no guarantees the demand curve is even approximately
linear.