Yearly oil production in Mexico, and yearly oil imports of the US from Mexico can be represented by the functions: P(t) = 3.0 –0.13t million barrels I(t) = 1.4 + 0.06t million barrels in year t, where t is the time in years since the start of 2000. a) What is represented by the functions P(t) - I(t) and I(t)/P(t)? What are the units for these functions? b) Let q(t) = I(t)/P(t). Compute q'(t) and q'(3). Interpret in a complete sentence. c) In marginal analysis, we would use q' (3) to estimate what quantity? Compute the actual value of that quantity and compare it with q' (3).

Yearly oil production in Mexico, and yearly oil imports of the US from Mexico can be represented by the functions: P(t) = 3.0 –0.13t million barrels I(t) = 1.4 + 0.06t million barrels in year t, where t is the time in years since the start of 2000. a) What is represented by the functions P(t) - I(t) and I(t)/P(t)? What are the units for these functions? b) Let q(t) = I(t)/P(t). Compute q'(t) and q'(3). Interpret in a complete sentence. c) In marginal analysis, we would use q' (3) to estimate what quantity? Compute the actual value of that quantity and compare it with q' (3).

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 9P

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