The function \(\mathrm{P(d) = -5(d - 40)^2 + 18000}\) models the estimated monthly profit, \(\mathrm{P(d)}\), in dollars, for a company...
GMAT Advanced Math : (Adv_Math) Questions
The function \(\mathrm{P(d) = -5(d - 40)^2 + 18000}\) models the estimated monthly profit, \(\mathrm{P(d)}\), in dollars, for a company that sells a particular smart-watch at a price of \(\mathrm{d}\) dollars. The model is considered valid for prices \(\mathrm{d}\) where \(\mathrm{20 \leq d \leq 70}\). Which of the following is the best interpretation of the vertex of the graph of \(\mathrm{y = P(d)}\) in the \(\mathrm{dP}\)-plane?
The company's maximum monthly profit is \(\$18{,}000\).
The company's maximum monthly profit is \(\$40\).
The company's minimum monthly profit is \(\$18{,}000\).
The company's minimum monthly profit is \(\$40\).
1. TRANSLATE the function form
- Given: \(\mathrm{P(d) = -5(d - 40)^2 + 18000}\)
- This matches vertex form: \(\mathrm{y = a(x - h)^2 + k}\)
- What this tells us: We can directly identify the vertex coordinates
2. INFER the vertex location and type
- Comparing forms: \(\mathrm{a = -5}\), \(\mathrm{h = 40}\), \(\mathrm{k = 18000}\)
- Vertex is at \(\mathrm{(40, 18000)}\)
- Since \(\mathrm{a = -5}\) is negative, parabola opens downward
- Downward opening means vertex is a maximum point
3. TRANSLATE coordinates into context
- \(\mathrm{d\text{-coordinate } (40)}\) represents the price: $40
- \(\mathrm{P\text{-coordinate } (18000)}\) represents the profit: $18,000
- Combined meaning: maximum monthly profit of $18,000 occurs at price $40
4. INFER the correct answer choice
- We need the interpretation of the vertex
- Vertex represents maximum profit of $18,000
- 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 \(\mathrm{(40, 18000)}\) but confuse which coordinate represents which variable. They might think the maximum profit is $40 instead of recognizing that $40 is the optimal price, and $18,000 is the maximum profit.
This may lead them to select Choice B ($40 maximum profit).
Second Most Common Error:
Poor INFER reasoning: Students identify the vertex correctly but fail to determine whether it represents a maximum or minimum. They might assume all vertices represent minimums or simply guess, not realizing the negative leading coefficient indicates a maximum.
This may lead them to select Choice C (minimum profit of $18,000).
The Bottom Line:
This problem tests whether students can connect the abstract mathematical concept of a vertex with real-world meaning, requiring careful attention to which variable represents price versus profit.
The company's maximum monthly profit is \(\$18{,}000\).
The company's maximum monthly profit is \(\$40\).
The company's minimum monthly profit is \(\$18{,}000\).
The company's minimum monthly profit is \(\$40\).