A firm's revenue, in $1000, is estimated by the equation R = 100 + 20A + X, where A, the advertisement expenditure in $1000s is known (non-random), and X ~ N(0, 900) for any value of A. QUESTION: Compute the level of advertisement expenditure to en
A firm's revenue, in $1000, is estimated by the equation R = 100 + 20A + X, where A, the advertisement expenditure in $1000s is known (non-random), and X ~ N(0, 900) for any value of A. QUESTION: Compute the level of advertisement expenditure to en
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A firm's revenue, in $1000, is estimated by the equation R = 100 + 20A + X, where A, the
advertisement expenditure in $1000s is known (non-random), and X ~ N(0, 900) for any value of A.
QUESTION:
Compute the level of advertisement expenditure to ensure that the probability of revenue being larger than $110,000 is 0.95. Show an explanatory graph.
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