In order to use Park's estimated equation to predict penetration for the typical systems investigated in this report, representative values must be assigned to the variables of the equation. The following values are employed in all of the simulations: P = $62.40, corresponding to the $5 per month plus $1 C = 50%. The effect of varying color set penetration In simulating cable systems for this study, we consider systems located in the central area of a television market, where off-the-air signal quality is generally high, and outlying areas of the same market, where quality is diminished. In the penetration equation the distance variable d is a measure of the reduction in quality. A d value of 0 corresponds to a viewer in the center of the market, while a value of 1 represents a viewer at the B-contour of the off-the-air signal. For the systems in this study we have used the following values: In middle markets: d = 0 for local stations d = 1 for viewing-test stations In edge markets: d = 0.5 for local stations d = 0.75 for viewing-test stations Tables 9 and 10, "Ten Percent Most Favorable Penetration conditions," are calculated using 133% of the penetration implied by Park's equation above. This corresponds approximately to the penetration value at the upper 10% confidence limit. 57-786 - 76 pt. 1 37 |