QD = f? P, PS, PC, Y, A, AC, N, CP, PE, TA, T=S …? [2. 1] where QD = quantity demanded of (e. g. , Toyota Prius or Chevy Volt) P = price of the good or service (the auto) PS = price of substitute goods or services (e. g. , the popular gasoline-powered Honda Accord or Chevy Malibu) PC = price of complementary goods or services (replacement batteries) Y = income of consumers A = advertising and promotion expenditures by Toyota, Honda, and General Motors (GM).
AC = competitors’ advertising and promotion expenditures N = size of the potential target market (demographic factors) CP = consumer tastes and preferences for a “greener” form of transportation PE = expected future price appreciation or depreciation of hybrid autos TA = purchase adjustment time period T/S = taxes or subsidies on hybrid autos QS = f? P, PI , PUI, T, EE, F, RC, PE, T=S …? (Equation 2. 2) where Qs = quantity supplied (e.g. , of domestic autos) P = price of the autos PI = price of inputs (e. g. , sheet metal).
PUI = price of unused substitute inputs (e. g. , fiberglass) T = technological improvements (e. g. , robotic welding) EE = entry or exit of other auto sellers F = accidental supply interruptions from fires, floods, etc. RC = costs of regulatory compliance PE = expected (future) changes in price TA = adjustment time period T/S = taxes or subsidies.
Product A is more riskier as Std dev / mean = 0. 8 and for Product B it is 0. 5 thus A is more riskier Not yet rated Anonymous – 1 hour later fot this we will calculate the coefficient of variation of both the product. coefficient of variation= SD/meanx100 coefficient of variation of Product A= 40000/50000×100= 80% coefficient of variation of Product B= 12500/250000×100= 5% higher the coefficient of variation higher will be the risk, therefore Product A is more risker.