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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

Source: Prism
Advanced Math
Nonlinear functions
HARD
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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?

A

The company's maximum monthly profit is \(\$18{,}000\).

B

The company's maximum monthly profit is \(\$40\).

C

The company's minimum monthly profit is \(\$18{,}000\).

D

The company's minimum monthly profit is \(\$40\).

Solution

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.

Answer Choices Explained
A

The company's maximum monthly profit is \(\$18{,}000\).

B

The company's maximum monthly profit is \(\$40\).

C

The company's minimum monthly profit is \(\$18{,}000\).

D

The company's minimum monthly profit is \(\$40\).

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