1. A department store has found that its value of sales (2) depends on the mumber of advertisements in circulars (x) and in newspapers (y), given by z = 420x – 2x2 – 3xy-5y2 + 640y + 1725. If the price per advertisement is RM1 in circulars and RM4 in newspapers, and the advertising budget is RM180,

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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1.
A department store has found that its value of sales (z) depends on the number of
advertisements in circulars (x) and in newspapers (y), given by
z = 420x – 2x2 – 3xy – 5y? + 640y + 1725.
If the price per advertisement is RM1 in circulars and RM4 in newspapers, and
the advertising budget is RM180,
iii)
Use the Bordered Hessian to show that the sales are in fact a maximum.
iv)
Estimate the effect on sales of a $1 increase in the advertising budget. Provide
your comment.
Transcribed Image Text:1. A department store has found that its value of sales (z) depends on the number of advertisements in circulars (x) and in newspapers (y), given by z = 420x – 2x2 – 3xy – 5y? + 640y + 1725. If the price per advertisement is RM1 in circulars and RM4 in newspapers, and the advertising budget is RM180, iii) Use the Bordered Hessian to show that the sales are in fact a maximum. iv) Estimate the effect on sales of a $1 increase in the advertising budget. Provide your comment.
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