x <- c(5.6, 6.3, 7, 7.7, 8.4)
y <- c(8.8, 12.4, 14.8, 18.2, 20.8)
b0 <- round(summary(lm(y ~ x))$coefficients[1], 2)
b1 <- round(summary(lm(y ~ x))$coefficients[2], 2)
The equation of the regression line is \(y=-14.8+4.26x\)
1st order partial derivatives with respect to \(x\): \[f_{x}(x,y)=24-6y^2=0\] \[y=(2, -2)\] 1st order partial derivatives with respect to \(y\): \[f_{y}(x,y)=-12xy-24y^2\] \[when \enspace y=2, \enspace x=-4\] \[when \enspace y=-2, \enspace x=4\] Therefore, the critical points of this equation are \((−4,2)\) and \((4,−2)\)
2nd order partial derivatives with respect to \(x\): \[f_{xx}(x,y)=0\] 2nd order partial derivatives with respect to \(y\): \[f_{yy}(x,y)=-12x-48y\]
\[\therefore f_{xy}=-12y\]
Second Derivative Test: \[D=f_{xx}(x,y)f_{yy}(x,y)-f_{xy}(x,y)^2\]
Critical point (4, -2): \[D=0*-12x-48y-(-12y)^2\] \[D=0*-12(4)-48(-2)-(-12(-2))^2=-576\]
Critical point (-4, 2): \[D=0*-12x-48y-(-12y)^2\] \[D=0*-12(-4)-48(2)-(-12(2))^2=-576\]
Since \(D<0\), critical points \((−4,2)\) and \((4,−2)\) are saddle points.
\[\text{Revenue = (Units Sold) x (Sales Price)}\] \[R(x,y)=(x*(81-21x+17y))+(y*(40+11x-23y))\] \[R(x,y)=81x-21x^2+17xy+40y+11xy-23y^2\] \[R(x,y)=-21x^2-23y^2+81x+40y+28xy\]
revenue <- function(x, y){
return(-21*(x^2) - 23*(y^2) + 81*x + 40*y + 28*x*y)
}
print(paste0("The revenue if she sells the 'house' brand for $2.30 and the 'name' brand for $4.10 is $", revenue(2.3, 4.1)))
## [1] "The revenue if she sells the 'house' brand for $2.30 and the 'name' brand for $4.10 is $116.62"
Let us find units produced in Los Angeles by finding the first derivative of the equation with respect to \(x\), \[\text{Given, } \enspace x+y=96\] \[\therefore y=96-x\] \[\text{Substitute y in to the equation, } \enspace C(x,y)=\frac{x^2}{6}+\frac{(96-x)^2}{6}+7x+25(96-x)+700\] \[\therefore C(x)=\frac{x^2}{3}-50x+4636\] 1st order derivative to get the critical points: \[C'(x)=\frac{2x}{3}-50=0\] \[\text{Solving for x, }x=75\] Let us now find units produced in Denver, \[75+y=96\] \[y=21\] Therefore, 75 units should be produced in Los Angeles and 21 units should be produced in Denver to minimize the total weekly cost.
q5 <- 1/24*(exp(22)-exp(28)-exp(38)+exp(44))
print(paste0("Exact form without decimals: ", format(q5, scientific = F)))
## [1] "Exact form without decimals: 534155947497085056"