ADVERTISE НERE Advertising Total Revenue 20 $6101 22 $6222 25 $6350 25 $6378 27 $6453 28 $6423 29 $6360 31 $6231
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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