Bounds inchas determined through regression analysis that


Bounds Inc.has determined through regression analysis that its sales (S) are a function ofthe amount ofadvertising (measured in units) in two different media. This is given by the following relationship (X=newspapers,Y=magazines):
S(X,Y) = 200X + 100Y - 10X^2 - 20Y^2 + 20XY

a. Find the level of newspaper and magazine advertising that maximizes the firm's sales.

b. Calculate the firm's sales at the optimal values ofnewspaper and magazine advertising determined in part (a).

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Bounds inchas determined through regression analysis that
Reference No:- TGS0572285

Expected delivery within 24 Hours