Question

Using the regression equation y=-0.16729x+1233.33, determine what the R(x) equation is?

Chart Title 1200 X1 1943 3190 4570 6490 7330 p 1035 581 405 124 85 1000 y = -0.1673x + 1232.9 R= 0.932 800 600 400 200 0 1000 2000 3000 4000 5000 6000 7000 8000

Answer 1

We know revenue function is product of price and number of unit sold .

R(x) = price *number of units sold

here regression equation gives the equation for price .

y is price p .

so P=-0.16729x+ 1233.33

here x is number of unit sold

so

R(x) = (-0.16729x+1233.33)x

R(x) = -0.16729x²+1233.33