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A company's daily profit, P, in thousands of dollars, is related to its daily advertising spending, x, in thousands of...

GMAT Advanced Math : (Adv_Math) Questions

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Advanced Math
Nonlinear functions
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A company's daily profit, P, in thousands of dollars, is related to its daily advertising spending, x, in thousands of dollars. The relationship is modeled by the equation \(\mathrm{P} = -2(\mathrm{x} - 9)^2 + 162\). Which of the following is the best interpretation of the vertex of the graph of this equation?

A
The company achieves a maximum daily profit of $162,000 with daily advertising spending of $9,000.
B
The company achieves a maximum daily profit of $9,000 with daily advertising spending of $162,000.
C
The company achieves a maximum daily profit of $2,000 with daily advertising spending of $9,000.
D
The company achieves a maximum daily profit of $162,000 with daily advertising spending of $2,000.
Solution

1. TRANSLATE the equation structure

  • Given: \(\mathrm{P = -2(x - 9)^2 + 162}\)
  • This matches vertex form: \(\mathrm{P = a(x - h)^2 + k}\)
  • We can identify: \(\mathrm{a = -2, h = 9, k = 162}\)

2. INFER what type of extremum this represents

  • Since \(\mathrm{a = -2 \lt 0}\), the parabola opens downward
  • This means we have a maximum, not a minimum
  • The vertex represents the highest point on the graph

3. TRANSLATE the vertex coordinates to context

  • The vertex occurs at \(\mathrm{(h, k) = (9, 162)}\)
  • In context:
    • \(\mathrm{x = 9}\) represents $9,000 in daily advertising spending (since x is in thousands)
    • \(\mathrm{P = 162}\) represents $162,000 in daily profit (since P is in thousands)

4. TRANSLATE this into the answer format

  • Maximum daily profit: $162,000
  • Advertising spending that achieves this: $9,000
  • This matches choice A exactly

Answer: A




Why Students Usually Falter on This Problem

Most Common Error Path:

Weak TRANSLATE skill: Students correctly identify the vertex as (9, 162) but swap which value represents what in their interpretation.

They might think: "The vertex is (9, 162), so maximum profit is $9,000 with advertising spending of $162,000." This reverses the roles of x and P, leading them to select Choice B ($9,000 profit, $162,000 advertising).

Second Most Common Error:

Poor TRANSLATE reasoning: Students see the coefficient -2 in the equation and incorrectly use it as either the profit amount or advertising amount, instead of recognizing it only affects the parabola's shape.

They might select Choice C ($2,000 profit) or Choice D ($2,000 advertising) by mistakenly incorporating the coefficient -2 into their final answer.

The Bottom Line:

Success requires carefully matching mathematical coordinates to their real-world meanings. The vertex coordinates tell the complete story - you just need to translate them correctly using the given context and units.

Answer Choices Explained
A
The company achieves a maximum daily profit of $162,000 with daily advertising spending of $9,000.
B
The company achieves a maximum daily profit of $9,000 with daily advertising spending of $162,000.
C
The company achieves a maximum daily profit of $2,000 with daily advertising spending of $9,000.
D
The company achieves a maximum daily profit of $162,000 with daily advertising spending of $2,000.
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