Problem

Web Site Traffic The daily traffic (“hits per day”) at OHaganBooks.com see...

Web Site Traffic The daily traffic (“hits per day”) at OHaganBooks.com seems to depend on the monthly expenditure on advertising through banner ads on well-known Internet portals. The following model, based on information collected over the past few months, shows the approximate relationship:

where h is the average number of hits per day at OHaganBooks.com, and c is the monthly advertising expenditure.

a. According to the model, what monthly advertising expenditure will result in the largest volume of traffic at OHaganBooks.com? What is that volume?

b. In addition to predicting a maximum volume of traffic, the model predicts that the traffic will eventually drop to zero if the advertising expenditure is increased too far. What expenditure (to the nearest dollar) results in no Web site traffic?

c. What feature of the formula for this quadratic model indicates that it will predict an eventual decline in traffic as advertising expenditure increases?

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