Over a period of seven years, about 500 residents of Freeport, Texas, were overbilled for their water usage. Each resident paid on average about $170 too much, making the total amount of the overbillings about $100,000. The city council decided not to issue refunds, saying that about 300,000 bills would have had to be examined, some residents had left town, and the individual refunds were not that large. Did the city council make the right decision?

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?