You are a sales executive for a division of GE that sells commercial jet engines

Question

You are a sales executive for a division of GE that sells commercial jet engines. Multi-million dollar marketing research indicates that the number of people willing to buy your top-of-the-line engine is inversely proportional to the square of its price. Specifically, your data suggests the number of customers f(x) expected to buy your product at a price of x-hundred million dollars is given by f(x) = 6/x2. How many customers do you expect to buy your product if you set its price to $100,000,000? The previous question is asking you to calculate f of what? What is f'(1)? What information does f'(l) convey?

Explanation / Answer

x is in 100 Million dollars

f(x) = 6/x2 = 100,000,000 dollars = 1 Million dollar = 0.01 Hundered Million dollar

i.e 6/x2 = 0.01

==> x2 = 6/0.01 = 600

==> x = 106 = 24.49 nearly 25

25 customers we have

b) To find the customersfor given value

c) f1(x) = 6 (-2)/x3

f1(1) = -12

it gives max value of money 12 Million dollars

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