In the Bass model for forecasting the adoption of a new product,the objective function
A)minimizes the sum of forecast errors.
B)minimizes the sum of squared forecast errors.
C)maximizes the number of adoptions.
D)maximizes the number of adoptions and imitations.

Question

Quizplus · Accepted Answer

The objective function in the Bass model minimizes the sum of squared forecast errors. This is done by estimating the parameters of the model using historical data and predicting the future adoption rate of the new product. By minimizing the sum of squared forecast errors, the model improves its accuracy in forecasting the adoption rate of the new product.

In the Bass Model for Forecasting the Adoption of a New