Problems

1. Use the fax machine data to model the relationship between cumulative fax machines produced and total production cost.

2. Use the fax machine data to model the relationship between cumulative fax machines produced and average production cost per machine.

3. A marketing director estimates that total sales of a product as a function of price will be as shown in the table below. Estimate the relationship between price and demand, and predict demand for a $46 price. A 1 percent increase in price will reduce demand by what percentage?

   Open table as spreadsheet

   Price	Demand
   $30.00	300
   $40.00	200
   $50.00	110
   $60.00	60

4. The brand manager for a new drug believes that the annual sales of the drug as a function of the number of sales calls on doctors will be as shown in the table below. Estimate sales of the drug if 80,000 sales calls are made on doctors.

   Open table as spreadsheet

   Sales calls	Units sold
   50,000	25,000
   100,000	52,000
   150,000	68,000
   200,000	77,000

5. The time needed to produce each of the first ten airplanes produced is as follows:

   Open table as spreadsheet

   Unit	Hours
   1	1000
   2	800
   3	730
   4	630
   5	600
   6	560
   7	560
   8	500
   9	510
   10	450

   Estimate the total number of hours needed to produce the next ten airplanes.