Tag Archives: probability

Take Rates - What are the most popular product choices?

August 24, 2009 – 10:43 am

I want to apply the discussion of entropy to the features of a configurable product. But first we have to introduce the important concept of a “take rate”. In different industries this is called an “attach rate”, or a “penetration rate”. The idea is very simple: the take rate of an option is the fraction [...]

By Roy Marsten | Posted in Uncategorized | Also tagged , , , , , , , | Comments (1)

The Entropy of a Coin Toss.

August 21, 2009 – 3:39 pm

A product is a collection of features, and each feature has mutually exclusive options. If a feature has only two options, then the choice is like a coin toss. The information contained in that choice is measured by entropy.

Entropy is a concept from classical thermodynamics that deals with the amount of disorder in a [...]

By Roy Marsten | Posted in Uncategorized | Also tagged , , , , , , , | Comments (1)