Determine the fee which should be charged to maximize daily beach revenues.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A community which is located in a resort area is trying to decide on the parking
fee to charge at the town-owned beach. There are other beaches in the area, and
there is competition for bathers among the different beaches. The town has
determined the following function which expresses the average number of cars
per day q as the function of parking fee p stated in cents.
q = 65000 – 13p
- Determine the fee which should be charged to maximize daily beach
revenues.
- What is the maximum daily beach revenue expected to be.
- How many cars are expected on an average day?
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