Chapter 3.2, Problem 45E

Car pricing A car dealer can buy midsize cars for $12\%$ under the list price, and he can buy luxury cars for $15\%$ under the list price. The following table gives the list prices for two midsize and two luxury cars.

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$\begin{array}{ccc}\text{Midsize}& \text{36,000}& \text{42,000}\\ \text{Luxury}& \text{50,000}& \text{56,000}\end{array}$

Write these data in a matrix and multiply it on the left by the matrix

$\left[\begin{array}{cc}0.88& 0\\ 0& 0.85\end{array}\right]$

What does each entry in this product matrix represent?