Maths-
General
Easy

Question

Two models are used to predict monthly revenue for a new sports drink. In each model, x is the number of $1 – price increases from the original $2 per bottle price.
Model A : f(x)= -12.5 x2+75x+200
Model B:

The correct answer is: 312.5


    a. Identify the price you would set for each model to maximize monthly revenue. Explain.
    Solution:- For maximizing the monthly revenue we have to find the vertex of  the both curves .
    For Model A :-
    In f(x)= -12.5 x2+75x+200,  a= -12.5, b= 75, and c= 200. So, the equation for the axis of symmetry is given by
    x = −(75)/2(-12.5)
    x = -75/-25
    x = 3
    The equation of the axis of symmetry for f(x)= -12.5 x2+75x+200 is x = 3.
    The x coordinate of the vertex is the same:
    h = 3
    The y coordinate of the vertex is :
    k = f(h)
    k = -12.5h2+75h+200
    k = -12.5(3)2 + 75(3) +200
    k = -112.5 + 225 + 200
    k = 312.5
    Therefore, the vertex is (3 , 312.5)
    The maximum revenue of model A will be the y-coordinate of vertex = 312.5
    For model B:-
    From the given graph we can analyse that the maximum revenue is 360 at the price of 4.
    b.    A Third model includes the points (9, 605), (8,600),    (10,600), (7,585) and (11,585). What price maximizes revenue according to this model ? Explain.
    Solution:- We have

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