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Product price changes depending on customer characteristics

I have a client who wants to test an insurance product, and has provided me with a list of prices for the proposed product by age, gender and smoker status. He wants to know price elasticity, but the price increases exponentially as age increases.

I need to use an ACBC design as we have sample size issues and I will need to analyse small groups.

I can't figure out how to do this... or even if I should.

The problem is that a 26 year old male non-smoker would pay $230 per fortnight, while a 50 year old male smoker would pay $2300 per fortnight. How can I evaluate the appeal of this product when the price changes so drastically (and non-linearly) by age, sex and gender?

Any help greatly appreciated!
asked Jan 30, 2019 by Sharon

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