gests that the normal probability distribution may be adequate. See: Arleigh W. Walker, How to Price Industrial Products, Harvard Business Review, Vol. 45 (SeptemberOctober 1967), pp. 125-132. Goodness-of-fit tests did not reject the assumption that the normal probability distribution is consistent with the data. The results of the test appear sufficient to justify using a normal probability formula. 6. George S. Day, Gerald Eskin, David B. Montgomery, and Charles B. Weinberg, Nikoll Electronics, Inc. (A), Cases in Computer and Model Assisted Marketing: Planning (Cupertino, Cal fornia: Hewlett-Packard Company, 1973), pp. 33-39. 7. Plus or minus 1.96 standard deviations is more precise, but the use of 2 is sufficient for this model's purpose. The author wishes to thank graduate students, Paul Schurr and John McNary, for heir assistance in gathering data and coding the computer p ogram for this project. He also wishes to thank Associate Professor Charles B. Weinberg, Stanford University, for his encouragement and helpful comments.
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Carey et al. (1976) studied this question.