Experimental Pricing As an Approach to Demand Analysis 27
These estimates turned out to be
b7 = 2.009675
bs = 2.288554
bg = -5.584685
blo = 2.120746
ASSR7,8,9,10 = 6.406250
The Determinate Model.-From outcomes of the preceding
tests, modified form (C) was inferred to be the best fitting
model.25 Accordingly, the final version of the model could be
appropriately written
Yik-i- = 0 + Si + i + 'kj-- + 2.00 2.288554XODk-j-
5.584685 Xi_ + 2.120746X;O1k-j- + .;k-j-.
Estimates of the regression constant (p) and of the class
constants (s6i, .is and .ji-'s), designated below, supplied the finish-
ing touches to the specific model used to summarize the demand
for orange concentrate for the given experimental data.26
57 A, ^A
0 = 5.71766 -1_- = -0.01042 a = -0.01740
As ^ A,
81 -= -0.02494 2-1- = -0.02874 a2 = 0.02513
Ai Ai A,
2 = 0.04973 3-2- = -0.01451 a3 = -0.00292
3 = -0.21705 = 0.02505
64 = 0.15449 5-1- = 0.03158
5 = 0.12897 62- = 0.02374
6 = 0.01189 7-1- = 0.00757
A, Ag
67 = -0.01709 w8-2- = -0.00924
68 = -0.01502 e_ = -0.02502
69 = -0.02444
610 = -0.04662
"2 The reduction in sum of squares due to fitting modified form (C) was
10.368225, representing a proportional reduction in variance of 0.986. How-
ever, the method of estimating the missing observations greatly increased