From the course: Data Analytics for Pricing Analysts in Excel (2018)

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Gather data to set price

Gather data to set price - Microsoft Excel Tutorial

From the course: Data Analytics for Pricing Analysts in Excel (2018)

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Gather data to set price

- [Narrator] I'm in the 01_06_Begin Excel file. Alright, now what we want to do is go through and build out the data that leads us to a demand curve. So what we've got here is a variety of prices and unit sales based on those prices. Notice the higher the price gets, the lower the unit sales are. And we have some data already. This data might be based on past sales prices that we've set and, you know, perhaps promotional events that have been run by the firm, etc. Now notice, we're still missing a whole bunch of data points. We don't have sales at, say, a price of 180. There's two ways we could get those sales. Either A, we could go and actually set a price of 180, look at how many units we sell, and then fill in this data point. That's time-consuming and frankly, a little bit costly. Or perhaps setting a sub-optimal price. The alternative way to do this is through a statistical technique that we call linear interpolation. I've done a few examples of linear interpolation for you here…

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