The price P per unit at which a company can sell all that it produces is given by the function P(x) = 300 — 4x. The cost
function is c(x) = 500 + 28x where x is the number of units produced. Find x so that the profit is maximum.
Answer the following question.
Q1. Find the value of x.
Q2. In using regression analysis for making predictions what are the assumptions involved.
Q3. What is a simple linear regression model?
Q4. What is a scatter diagram method?
AAAaannndd the bot gets it wrong yet again!
profit = revenue-cost, so
p(x) = x(300-4x)-(500+28x)
p is a max at x=34
A1. x = 75
A2. The assumptions involved in using regression analysis for making predictions include linearity, homoscedasticity, normality, and independence of errors.
A3. A simple linear regression model is a statistical model that describes the linear relationship between a single independent variable and a dependent variable.
A4. The scatter diagram method is a graphical technique used to determine the relationship between two variables. It is used to plot the data points on a graph and then draw a line of best fit to represent the relationship between the two variables.