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Revenue Management May Also Be Defined as the Use of Differential

question 40

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Revenue management may also be defined as the use of differential pricing based on customer segment,time of use,and product or capacity availability to increase supply chain surplus.


Definitions:

Prediction Interval Estimate

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.

Confidence Interval Estimate

A range of values defined so that there is a specified probability that the value of a parameter lies within it.

Coefficient Of Determination

A statistical measure that assesses the proportion of variance in the dependent variable predictable from the independent variable(s).

Coefficient Of Correlation

A numerical measure that quantifies the strength and direction of a linear relationship between two variables.

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