Advertising A small manufacturing firm collected the
following data on advertising expenditures A (in thousands
of dollars) and total revenue R (in thousands of dollars).
(a) Draw a scatter diagram of the data. Comment on the
type of relation that may exist between the two variables
(b) The quadratic function of best fit to these data is
R(A) = - 7.76A2 + 411.88A + 942.72
Use this function to determine the optimal level of
advertising.
(c) Use the function to predict the total revenue when the
optimal level of advertising is spent.
(d) Use a graphing utility to verify that the function given in
part (b) is the quadratic function of best fit.
(e) Use a graphing utility to draw a scatter diagram of the
data, and then graph the quadratic function of best fit on
the scatter diagram.
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