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Politics : Formerly About Applied Materials

AMAT 226.05

+1.3%

Nov 14 9:30 AM EST

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To: Skeeter Bug who wrote (29540)	4/13/1999 1:39:00 PM
From: Math Junkie	Read Replies (1) of 70976

<<rich, i don't assume anything. unit growth in feb was up 1% in the retail sector.>> Well, for one thing, you're assuming that a one month statistic proves something about the overall health of a seasonal industry. It's also true that in order to get from A. Cheaper and cheaper computers are becoming available to B. Revenues are being hurt by this you have to make some kind of assumption about elasticity. Otherwise you have no way of logically deducing the outcome. For example, if your selling price goes down by a factor of ten, does your volume go up by a factor of five, or by a factor of twenty? In the first case your revenue is down by a factor of two. In the second case, it is up by a factor of two. In order to make a prediction about the outcome, there must be at least an implied assumption about elasticity, unless you actually have data on the elasticity, which I doubt!

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