The total annual revenue R of Miramar Resorts Hotel is related to the amount of money x the hotel spends on advertising its services by the function R(x) = −0.003x3 + 1.35x2 + 2x + 8000 (0 ≤ x ≤ 400) where both R and x are measured in thousands of dollars. (a) Find the interval where the graph of R is concave upward and the interval where the graph of R is concave downward. (Enter your answers using interval notation. If the answer cannot be expressed as an interval, enter EMPTY or ∅.) concave upward concave downward What is the inflection point of the graph of R? (x, y) = (b) Would it be more beneficial for the hotel to increase its advertising budget slightly when the budget is $140,000 or when it is $160,000? It would be more beneficial for the hotel to increase its advertising budget slightly when the budget is $140,000. It would be more beneficial for the hotel to increase its advertising budget slightly when the budget is $160,000.
Minimization
In mathematics, traditional optimization problems are typically expressed in terms of minimization. When we talk about minimizing or maximizing a function, we refer to the maximum and minimum possible values of that function. This can be expressed in terms of global or local range. The definition of minimization in the thesaurus is the process of reducing something to a small amount, value, or position. Minimization (noun) is an instance of belittling or disparagement.
Maxima and Minima
The extreme points of a function are the maximum and the minimum points of the function. A maximum is attained when the function takes the maximum value and a minimum is attained when the function takes the minimum value.
Derivatives
A derivative means a change. Geometrically it can be represented as a line with some steepness. Imagine climbing a mountain which is very steep and 500 meters high. Is it easier to climb? Definitely not! Suppose walking on the road for 500 meters. Which one would be easier? Walking on the road would be much easier than climbing a mountain.
Concavity
In calculus, concavity is a descriptor of mathematics that tells about the shape of the graph. It is the parameter that helps to estimate the maximum and minimum value of any of the functions and the concave nature using the graphical method. We use the first derivative test and second derivative test to understand the concave behavior of the function.
The total annual revenue R of Miramar Resorts Hotel is related to the amount of money x the hotel spends on advertising its services by the function
where both R and x are measured in thousands of dollars.
| concave upward |
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| concave downward |
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What is the inflection point of the graph of R?
(b) Would it be more beneficial for the hotel to increase its advertising budget slightly when the budget is $140,000 or when it is $160,000?
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