Pricing Analytics

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Assumption:

In Part (c), it is assumed that the utility is dependent on the Margin bonus received. So, keeping the
utility at the previous value of 38.38 in the regression equation, “Utility = 124.123-0.0016*Margin-
Bonus”.

Varying the Sales quota and Bonus as integer multiples, the values (Sales = 1600000, Bonus-12000)
nearest to the utility were the new values to be used.

Restricting to categorical values

Ancillary revenue is revenue that is derived from goods or services other than a company's primary
product offering. Examples include concessions at sporting events, baggage handling or seat
selection revenue received by airlines, restaurant revenue received by hotel owners, and car-wash
services sold by gas stations.

Game theory is the study of mathematical models of strategic interaction among rational decision-
makers. It has applications in all fields of social science, as well as in logic, systems science and
computer science.

The prisoner's dilemma is a paradox in decision analysis in which two individuals acting in their own
self-interests do not produce the optimal outcome. The typical prisoner's dilemma is set up in such a
way that both parties choose to protect themselves at the expense of the other participant.

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