Regression Project: Find the Profit Model
Annual Widget Production x (widgets) Annual Total Cost c($)
10 609
20 1105
30 1523
40 2150
50 2603
60 3121
70 3672
80 4103
90 4601
100 5214
Recall that profit can be computed in terms of revenue and cost. Assume that the annual widget sales match the annual widget demand and annual widget production. Construct a model for profit using the models for revenue and cost that you found in the Revenue and Cost sections. Find the model for profit P ( x ), where P ( x ) is the total annual profit in dollars for x widgets sold, and write it as P ( x ) = a x 2 + b x + c. Note: You are using the fact that P ( x ) = R ( x ) − C ( x ), not creating a table of data.
value of a. -0.956
value of b. 106.2
value of c. ???????????????????? It is not 0, 73.4, 124.2, 104.87, 157, 50.8 I've tried all of these