Answer to Question #281196 in Statistics and Probability for John

Question

[A] A company calculates its expected profits as a function of the quantity of the items it can sell. How much are their expected profits if the company’s profit function is P(q)=q³−2000q+500 and their current sales quantity, q, is 60?

Answer 1

The expected profit function is given by P(q)=q³ -2000q+500

To get the expected profit when q=60

Substituting the value of q =60 in the equation.

P(60)=(60)³ -(2000*60) +500

=216000-120000+500,

P(60)=96500.