The Dirichlet Model Explained

Dirichlet model is completely determined by 3 parameters: When you choose Dirichlet model you are taken to this dialog.

The applet displays the current scenario’s Starting Month, Starting Year, and Number of Months for the Project.  These are for informational purposes only the user cannot can these values. To change these values the user would have to retur to the Home page and edit the scenario.

Applet displays the Starting Transactions and Final Transactions.  These are determined completely from the Dirichlet model parameters. The user does not enter these values.  If this is the first time the Dirichlet model has been defined for this product then Starting Transactions and Final Transactions are based on the default values for the parameters (K, A and M)

The user enters a value for the K (shape) parameter either by entering the value manually or by using the parameters slider.  Then the user enters a value for the A (scale) parameter either by entering the vlaue manually or by using the slided.

Market Penetration is the percentage of the ultimate market that have been convert to subscribers by the end of the project.  Market Penetration is completely determined by the K and A parameters.

The user enters a value for the ultimate market size parameter either by entering the value manually or by using the parameters slider.