TY - GEN
T1 - Bayesian inference for the demand of engineering products
AU - Abbas, Ali E.
AU - Hazelrigg, George A.
AU - Alkindi, Mahmood
PY - 2012
Y1 - 2012
N2 - Within the context of a profit making firm, the job of a design engineer is to choose design parameters and product attributes that maximize the expected utility of profit. To do this effectively, the engineer needs to have an estimate of the demand for the product as a function of its price and its attributes. The firm may conduct a survey to elicit consumer preferences for the product at a given price and would like to update their belief about demand given the survey data. The purpose of this paper is to present a Bayesian methodology for demand estimation that meets this need. The estimation process begins with a prior probability distribution of demand at a given price. Using Bayesian analysis, we show how to update demand for the product given various pieces of information such as market analysis, polls and a variety of other methods. We also discuss situations where consumers can demand multiple units of the product at the given price.
AB - Within the context of a profit making firm, the job of a design engineer is to choose design parameters and product attributes that maximize the expected utility of profit. To do this effectively, the engineer needs to have an estimate of the demand for the product as a function of its price and its attributes. The firm may conduct a survey to elicit consumer preferences for the product at a given price and would like to update their belief about demand given the survey data. The purpose of this paper is to present a Bayesian methodology for demand estimation that meets this need. The estimation process begins with a prior probability distribution of demand at a given price. Using Bayesian analysis, we show how to update demand for the product given various pieces of information such as market analysis, polls and a variety of other methods. We also discuss situations where consumers can demand multiple units of the product at the given price.
UR - http://www.scopus.com/inward/record.url?scp=84884664684&partnerID=8YFLogxK
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U2 - 10.1115/DETC2012-70153
DO - 10.1115/DETC2012-70153
M3 - Conference contribution
AN - SCOPUS:84884664684
SN - 9780791845066
T3 - Proceedings of the ASME Design Engineering Technical Conference
SP - 785
EP - 792
BT - ASME 2012 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, IDETC/CIE 2012
T2 - ASME 2012 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, IDETC/CIE 2012
Y2 - 12 August 2012 through 12 August 2012
ER -