Business Math: Functions & Profit Analysis
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ScribdTranslationsBusiness Math: Functions & Profit Analysis
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ScribdTranslationsSan Marcos University
Bachelor's degree in Business Administration
Teleclass Report - Module 2
Professor Marco Aguilar Arce
1. According to the function determine what is indicated:
Let the linear function f(X)-3x + 2/3, determine:
a) Its monotony:
m=-3
as m<0
Then its monotonicity is strictly decreasing.
b) Intersections with the axes (x & y)
Intersection at x:
x = (2/3)(1/3)
x=2/9
therefore, the intersection at x=(2/9,0)
Y-intercept:
If in y, x=0 then,
-3(0)+2/3 = 2/3
Therefore, the intersection at y=(0,2/3)
Let the quadratic function f(X)=x2-4x+1, determine:
a) The concavity
a=1, y 1>0 therefore it is concave up
b) The vertex
V=(-b/2a, -Δ/4a)
V=(4/2, b2-4ac/4a
V=(2, (-12/4))
V=(2, -3)
c) Intersections with the axes (x & y) (if any)
Intersection at x:
Δ=b2-4ac
Δ=-42-4(1)(1)
Δ=16-4
Δ=12, so since 12>0, it intersects at 2 points:
(4 + √12) / 2
x1=(4+2√3)/2
x1 = 2(2 + √3) / 2
x1=2+√3
x2 = (4 - √12) / 2
x2 = (4 - 2√3) / 2
x2 = 2(2 - √3) / 2
x2 = 2 - √3
therefore, the intersection is at x=(2+√3, 0), =(2-√3, 0)
Y-intersection:
c=1
Therefore, the intersection at y=(0,1)
2. Read each problem and answer the questions:
One day, Ana paid €600 for $575, and Álvaro paid €651 for $599.
dollars.
a) Find the equation of the line that gives us the price in euros, y, in x dollars.
▪ Approach:
Dollars
For Ana we have: A(575, 600)
For Álvaro we have to: B(599, 651)
both values represent points from which we will obtain the slope
as m=y2-y1/x2–x1by definition of slope
▪ Application of formulas
At point Ax1=575, y1600
At point Bx2=599, y2=651
So;
m=651-600/599-575
m = 51/24
m=17/8
Now we calculate b with the formula b=y1-mx1
b = 600 - (17/8) * 575
b = 600 - (9775 / 8)
b = -4975/8
Thus, the equation of the line is: 17/8 x – 4975/8
b) How much would we have paid for 700 dollars?
We substitute into the equation of the line x=700.
y = 17/8 (700) - 4975/8
y=2975/2–4975/8
y=6925/8
y=865,625
For 700 dollars we would have paid 865.625€
The profit (in thousands of dollars) of a company is given by: P(x) = 5000 + 1000x - 5x2
where x is the amount (in thousands of dollars) that the company spends on advertising.
a) Find the amount, x, that the company must pass to maximize its profit.
b) Find the maximum profit.
The function that provides the benefit is a quadratic function. This function (non-profit)
has a maximum value at:
x = h = -b / 2a
x=h= 100
x= 100
1. The maximum profit Pmax, when x = 100 thousand is spent on advertising, is given by
the maximum value of the function P
k = c - b2/ 4a
2. The maximum profit Pmax, when x = 100 thousand is spent on advertising, is also
given by P (h = 100)
P (100) = 5000 + 1000 (100) - 5 (100)2= 55000.
When the company spends 100 thousand dollars on advertising, the profit is maximum and it is
equivalent to 55,000 dollars.