Suppose that sales are related to advertising expenditures according to one of the following two models, where
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Suppose that sales are related to advertising expenditures according to one of the following two models, where S1 and Sn are sales and x is advertising, all in millions of dollars.
S1 = 30 + 20x - 0.4x2
Sn = 24.58 + 325.18(1 - e-x/14)
(a) Graph both of these functions on the same set of axes. Use a graphing utility.
(b) Do these two functions give approximately the same sales per million dollars of advertising for 0 ≤ x ≤ 20?
(c) How do these functions differ for x20? Which more realistically represents the relationship between sales and advertising expenditures after $20 million is spent on advertising? Why?
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Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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