Mid Week Assignment Week 3

Introduction

According to Amari .S (2008 , parameter estimation describes the selection of a certain population characteristic based on an analysis or judgment . Parameter estimation is basically a scientific and statistical approach that entails exposure of variables to certain conditions inorder to determine an estimate . Inference making and drawing of conclusions is also important in business .This paper looks into the use of parameter estimation , inference making and its various aspects , in business

Parameter estimation in the marketing sector

Marketing is a field branded by so much dynamism and the use

of parameter estimation is beneficial in the sense that it detects trend changes and provides prediction outcomes . Huff .L .D (2003 , a notable pioneer of several analyses and the developer of the Huff Model , asserts that the use of parameter estimation models has been essential in marketing and helps in predicting consumer trends , delineating trade areas , locating retain and service facilities , analyzing market performance , simulating different market scenarios and forecasting sales . He claims that these models have been useful in predicting certain outcomes of the marketing industry , where forecasting of market trends is imperative when it comes to decision making

Certain parameters are considered important to decision makers in marketing . Bemmaor .C .A and Lee .J (November 1 , 2000 ) proposes certain marketing parameter estimates that may be of use in decision making innovation , imitation and penetration rate , all of which are encompassed in the Bass model . The innovation touches on certain aspects such as branding , advertising , sales volumes , popularity , purchasing...