Shopping Center A
Square foot: 3,500
Distance: 4 miles
Shopping Center B
Square foot: 1,500
Distance: 5 miles
Shopping Center C
Square foot: 300
Distance: 3 miles
Use the Huff Gravity model to find the probability that customers will shop at shopping center A.
To use the Huff Gravity model to find the probability that customers will shop at Shopping Center A, we need to consider the square footage of each shopping center and the distance from each center to the customers.
The Huff Gravity model is based on the equation:
P(A) = (S(A) * D(A)) / (Σ(S(I) * D(I)))
where:
P(A) is the probability of customers shopping at Shopping Center A,
S(A) is the square footage of Shopping Center A,
D(A) is the distance from Shopping Center A to the customers,
S(I) is the square footage of the other shopping centers (B and C),
D(I) is the distance from the other shopping centers (B and C) to the customers, and
Σ denotes the summation across all shopping centers.
Let's calculate the probability using the given data:
P(A) = (3,500 * 4) / ((1,500 * 5) + (300 * 3))
P(A) = 14,000 / (7,500 + 900)
P(A) = 14,000 / 8,400
P(A) ≈ 0.8333
Therefore, the probability that customers will shop at Shopping Center A is approximately 0.8333 or 83.33%.
Note: The Huff Gravity model is a simplified model, and there are other factors that can influence customer behavior, such as competition, prices, and accessibility.