Hattie Burford

MATH 631 Mathematics for Management

Dr. Stack
Project 2- Mathematical Modeling

Project #2 - 50 points (due by 11:55 pm on Friday, January 26, 2018)

1. Linear modeling

In November 2001, Hall Kinion advertised an Account Executive position in Savannah, Georgia, for a
salesperson with experience selling Internet services. The job advertised a $35K base salary and $24K
to $48K in commissions in the first year.

a. Assuming a 20 percent commission rate, how many dollars in sales would you have to generate to
earn $64K annually? Use any type of mathematical computation needed and show all work necessary to
achieve the solution.

$35,000 base salary

$24000-$48000 commissions in 1st year

Let 𝑺=sales
$𝟔𝟒𝟎𝟎𝟎 =. 𝟐(𝑺) + $𝟑𝟓𝟎𝟎𝟎
$𝟐𝟗𝟎𝟎𝟎 =. 𝟐(𝑺)
$𝟏𝟒𝟓𝟎𝟎𝟎 = 𝑺

Therefore, you would need to generate $145,000 in sales to earn $64,000 annually.

b. If you were in the sales field, why would this type of information be valuable to you?

This information would be valuable for someone in this field who was trying to track and budget
their income. For example, if a salesman needed to earn a certain amount of money in a year to
support his family, he would need to be able to have a way to make sure that he is on track to meet
his needs financially. This equation could also be manipulated and used to determine what
commission rate may do to income if the sales amount was known.

2. Linear modeling

The Recommended Daily Allowance (RDA) for fat for a person on a 2,500-calorie-per-day diet is less
than 80 grams. A McSalad Shaker Chef Salad contains 8 grams of fat. A package (44.4 mL) of ranch
salad dressing contains 18 grams of fat.

a. Write the equation for fat grams as a function of Chef Salads.

𝑺 = 𝑪𝒉𝒆𝒇 𝑺𝒂𝒍𝒂𝒅𝒔
𝑭 = 𝑭𝒂𝒕 𝒈𝒓𝒂𝒎𝒔
𝑭 = 𝟖𝑺 , because there are 8 grams of fat per one chef salad.

b. How many salads can you eat and remain below the RDA for fat?

Using the formula, 𝑭 = 𝟖𝑺

𝟖𝟎 = 𝟖𝑺, 𝒕𝒉𝒆𝒓𝒆𝒇𝒐𝒓𝒆, 𝑺 = 𝟏𝟎
Since consuming 10 salads would be consuming 80 grams of fat, in order to keep the RDA of fat
consumption below 80 grams, an individual must only eat 9 salads. The tenth salad would put the
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

individual right at 80 grams, not less than 80, which is what is recommended.

c. If you use one package of ranch salad dressing, how many salads can you eat and remain below the
RDA for fat?

Using one packet of ranch salad dressing, we use the formula 𝑭 = 𝟖𝑺 + 𝟏𝟖

In order to remain below the RDA for fat, we substitute 80 in for F, 𝟖𝟎 = 𝟖𝑺 + 𝟏𝟖
𝟔𝟐 = 𝟖𝑺
𝟕. 𝟕𝟓 = 𝑺
Therefore, an individual can use one package of ranch salad dressing while eating 7 salads. This
will allow them to remain under the 80 grams of fat daily allowance.

d. The RDA for fat for one person on a 2000-calorie diet is 65 grams. If a person on a 2,000-calorie diet
uses one package of ranch salad dressing, how many salads can that person eat and remain below the
RDA for fat?

In order to remain below the new RDA for fat, we substitute 65 in for F, 𝟔𝟓 = 𝟖𝑺 + 𝟏𝟖
𝟒𝟕 = 𝟖𝑺
𝟓. 𝟖𝟕𝟓 = 𝑺
Therefore, an individual on a 2000-calorie diet can use one package of ranch salad dressing while
eating 5 salads. This will allow them to remain under the 65 grams of fat daily allowance.

3. Consider the following table of information about the enrollment trend of Washington State Public
Universities:
Washington State Public
University Enrollment
Years Since
Students (S)
1990 (t)
0 81,401
1 81,882
2 83,052
3 84,713
4 85,523
5 86,080
6 87,309
7 89,365
8 90,189
9 91,543
10 92,821

a. Find the equation of the line of best fit.

Using my TI-84, LinReg, I found the equation of the line of best fit to be:
𝑺 = 𝟏𝟏𝟔𝟓. 𝟖𝟔𝟑𝟔𝟑𝟔(𝒕) + 𝟖𝟎𝟖𝟖𝟔. 𝟖𝟔𝟑𝟔𝟒
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

b. Interpret the meaning of the slope and the y-intercept of the model.

The slope is showing the change in enrollment at Washington State Public University (on
average) each year from 1990 to 2000. Based on the line of best fit, the slope is approximately
1166 students. The y-intercept is 80886.86 (approximately). This is the number of students that
would have been enrolled in 1990 (according to the line of best fit equation).

c. Explain why you do or do not believe that the model would be a useful tool for businesses and/or
consumers.

I believe that this can be a useful tool to help predict future values and trends. It also allows
you to see how the data compares to other data from other universities, state colleges, etc. The
University can use this model to determine the enrollment sizes in the future. This would allow
them to make decisions on budget, staff, courses offered, and the overall demand of their
services.

From a business viewpoint, a model such as this would allow them to see if the number of
customers are increasing or decreasing, if there need to be more or less workers, the quantity
of product that needs to be ordered, etc.

4. Quadratic Function Models:

Retail prescription drug sales in the US increased from 1995 to 2000 as shown in the following table:

Years Since Retail Sales (billions of

1995 (t) dollars) [S(t)]
0 68.6
2 89.1
3 103.0
4 121.7
5 140.7

Model the data using a quadratic function. That is, find a quadratic function (an equation in terms of
t) that best fit the data in the table. Then use the model to predict retail prescription drug sales in
1996 and 2001.
𝑺(𝒕) = 𝟏. 𝟒𝟏𝒕𝟐 + 𝟕. 𝟒𝟒𝒕 + 𝟔𝟖. 𝟓𝟓
In 1996: 𝑺(𝟏) = 𝟏. 𝟒𝟏(𝟏)𝟐 + 𝟕. 𝟒𝟒(𝟏) + 𝟔𝟖. 𝟓𝟓 = 𝟕𝟕. 𝟒
In 2001: 𝑺(𝟔) = 𝟏. 𝟒𝟏(𝟔)𝟐 + 𝟕. 𝟒𝟒(𝟔) + 𝟔𝟖. 𝟓𝟓 = 𝟏𝟔𝟑. 𝟗𝟓

Should caution be exercised when using the model to predict retail prescription drug sales in 2005
and beyond? Why or why not?
Yes, I believe that caution should be exercised when using a model from previous years that
far in the past. I would be cautious because sales are not going to typically keep rising at that
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

fast of a rate for prescription drugs. There are always new ones coming out, off brands
becoming more popular, etc. Therefore, if you can find or create an updated model, that would
be more useful.
5. Quadratic Models

Percentage of New Privately Owned One-Family Houses

Financed with a Conventional Mortgage

Years Since Conventional Mortgages

1970 (t) (percent) (M)
0 47
10 55
20 62
25 74
29 79

a. Sketch a scatter plot for the data.

Conventional Mortgages (percent) (M)

90
80
70
60
50
40
30
20
10
0
0 5 10 15 20 25 30 35

b. Explain why a quadratic function might or might not fit the data.

Typically, we see a quadratic function work for data that follows a parabola shape that
increases or decreases more rapidly over time. However, looking at our scatterplot, we can see
there are a few data points that do not fit this model. At year 10 and 25 the data spikes up a
small percentage, out of position. A quadratic function is most likely not the best fit for the
data, but it also may be better than the other models, so it may be useful.

c. If it appears that a quadratic function will fit the data, find the function.

If we decided to use a quadratic function to model the data the function would be:
𝑴(𝒕) =. 𝟎𝟐𝟔𝒕𝟐 +. 𝟑𝟑𝟒𝒕 + 𝟒𝟕. 𝟒𝟓𝟔
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

d. According to the model, in what year were 50 percent of the new privately owned homes financed
with a conventional mortgage? How did you arrive at your answer?

Using our model and the quadratic formula we find:

𝑴(𝒕) =. 𝟎𝟐𝟔𝒕𝟐 +. 𝟑𝟑𝟒𝒕 + 𝟒𝟕. 𝟒𝟓𝟔
𝟓𝟎 =. 𝟎𝟐𝟔𝒕𝟐 +. 𝟑𝟑𝟒𝒕 + 𝟒𝟕. 𝟒𝟓𝟔
𝟎 =. 𝟎𝟐𝟔𝒕𝟐 +. 𝟑𝟑𝟒𝒕 − 𝟐. 𝟓𝟒𝟒
−𝒃±√𝒃𝟐 −𝟒𝒂𝒄 −.𝟑𝟑𝟒±√(.𝟑𝟑𝟒)𝟐 −𝟒(.𝟎𝟐𝟔)(−𝟐.𝟓𝟒𝟒)
= =5.37
𝟐𝒂 𝟐(.𝟎𝟐𝟔)

Therefore, it was in between the years of 1975 and 1976.

6. Cubic Models
Electronic Arts, Inc., is one of the premier producers of interactive electronic games playable on game
platforms such as GameCube, PlayStation, etc. Despite the sluggish economy in the early 2000s,
Electronic Arts showed an overall strong growth in revenue as illustrated in the following table:

Net Revenues
Years Since End of
(millions of dollars)
Fiscal Year 1998 (t)
[R(t)]
0 908.852
1 1221.863
2 1420.011
3 1322.273
4 1724.675
5 2482.244

Find a polynomial model for the annual revenue of Electronic Arts, Inc., and forecast in what year the
revenue will reach $3 billion.
𝐑(𝐭) = 𝟒𝟑. 𝟖𝟕𝐱 𝟑 − 𝟐𝟕𝟒. 𝟕𝟔𝐱 𝟐 + 𝟓𝟗𝟒. 𝟕𝟐𝐱 + 𝟖𝟗𝟗. 𝟗𝟓
𝟑𝟎𝟎𝟎 = 𝟒𝟑. 𝟖𝟕𝐱 𝟑 − 𝟐𝟕𝟒. 𝟕𝟔𝐱 𝟐 + 𝟓𝟗𝟒. 𝟕𝟐𝐱 + 𝟖𝟗𝟗. 𝟗𝟓
Using my polysml2 application on my TI-84, I found that sales would reach $3 billion (or 3,000 million)
when
x=5.395, or 5.395 years since the end of the fiscal year 1998.

Please explain any strengths and weaknesses to this model.

I also think that caution should be exercised when using this model because of the amount of
data. In order to really be confident in this model I would want more data, and I would want
to compare other models as well. Furthermore, the consistency of the data that we do have
may have skewed the results of this model. For example, between 2002 and 2003 there is a
major increase in revenue. This may have an effect on the model and its predictions for the
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

upcoming years. On the other hand, I think one of the strengths of this model is that it allows
us to continue to graph the data, and it allows us to make predictions such as these.
7. Exponential Models

The average annual salary of an NBA player increased from $170 thousand in 1980 to $2.6 million in
1998, as shown in the following table:
Average NBA Athlete's Salary
Years Since Annual Salary (thousands of
1980 (t) dollars) (S)
0 170
5 325
10 750
15 1,900
16 2,000
17 2,200
18 2,600

Find an exponential model that represents this data.

𝑺(𝒕) = 𝟏𝟔𝟏. 𝟒𝟑(𝟏. 𝟏𝟔𝟗)𝒕

Estimate, to the nearest year, using your model, when the average salary will reach $4 million.
$4 million=$4000 in our table.
𝟒𝟎𝟎𝟎 = 𝟏𝟔𝟏. 𝟒𝟑(𝟏. 𝟏𝟔𝟗)𝒕 Used the exponential regression in my calculator to get this.
𝟐𝟒. 𝟕𝟕𝟗 = 𝟏. 𝟏𝟔𝟗𝒙 Divided both sides by 161.43
𝐥𝐧(𝟐𝟒. 𝟕𝟕𝟗)
= 𝟐𝟎. 𝟓𝟓𝟕
𝐥𝐧(𝟏. 𝟏𝟔𝟗)
Therefore, the annual average salary for the NBA’s athletes would reach $4 million in the year
2000.
8. Exponential Models

Inflation (rising prices) causes money to lose its buying power. In the United States, inflation is
consistently around 3 percent annually.

a. If a candy bar costs $0.79 today, what will it cost 10 years from now?

𝑷(𝒕) =. 𝟕𝟗𝒆.𝟎𝟑𝒕 𝒘𝒉𝒆𝒓𝒆 𝑷 𝒊𝒔 𝒑𝒓𝒊𝒄𝒆 𝒂𝒏𝒅 𝒕 𝒊𝒔 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒚𝒆𝒂𝒓𝒔 𝒇𝒓𝒐𝒎 𝒕𝒐𝒅𝒂𝒚

𝑷(𝒕) =. 𝟕𝟗𝒆.𝟎𝟑(𝟏𝟎)
𝑷(𝒕) = 𝟏.07
𝑻𝒉𝒆𝒓𝒆𝒇𝒐𝒓𝒆, 𝒃𝒂𝒔𝒆𝒅 𝒐𝒏 𝒖𝒓 𝒆𝒙𝒑𝒐𝒏𝒆𝒏𝒕𝒊𝒂𝒍 𝒆𝒒𝒖𝒂𝒕𝒊𝒐𝒏, 𝒕𝒆𝒏 𝒚𝒆𝒂𝒓𝒔 𝒇𝒓𝒐𝒎 𝒏𝒐𝒘, 𝒂 𝒄𝒂𝒏𝒅𝒚 𝒃𝒂𝒓 𝒘𝒊𝒍𝒍 𝒄𝒐𝒔𝒕 $𝟏.07.
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

b. When will the same candy bar cost $3?

𝟑. 𝟎𝟎 =. 𝟕𝟗𝒆.𝟎𝟑𝒕
𝟑. 𝟕𝟗𝟕 = 𝒆.𝟎𝟑𝒕 Divided both sides by .79
𝟏. 𝟑𝟑𝟒 =. 𝟎𝟑𝒕 Took the natural log of both sides.
44.47=t

Therefore, it will be about 44 and ½ years until the price of a candy bar is $3.00.

9. Exponential Models

An investor has $3000 to invest in two different investment accounts: Money Market A and Mutual
Fund B. The annual return for Money Market A was 8.67 percent, while the average annual return on
the Mutual Fund B was 6.93 percent. The investor plans to invest twice as much in the Money Market
as in the Mutual Fund. Assuming that the future rates of return will be the same as the past rates of
return, complete the following:

a. Find the equation of the function (the model) for the predicted value of the $3000 investment t years
from now.

𝑴𝒐𝒏𝒆𝒚 𝑴𝒂𝒓𝒌𝒆𝒕 𝑨 = 𝟐𝟎𝟎𝟎𝒆.𝟎𝟖𝟔𝟕𝒕

𝑴𝒖𝒕𝒖𝒂𝒍 𝑭𝒖𝒏𝒅 𝑩 = 𝟏𝟎𝟎𝟎𝒆.𝟎𝟔𝟗𝟑𝒕
𝑽(𝒕) = 𝟐𝟎𝟎𝟎𝒆.𝟎𝟖𝟔𝟕𝒕 + 𝟏𝟎𝟎𝟎𝒆.𝟎𝟔𝟗𝟑𝒕
b. What is the predicted value of the investment 20 years from now?

𝑽(𝟐𝟎) = 𝟐𝟎𝟎𝟎𝒆.𝟎𝟖𝟔𝟕(𝟐𝟎) + 𝟏𝟎𝟎𝟎𝒆.𝟎𝟔𝟗𝟑(𝟐𝟎) = $𝟏𝟓, 𝟑𝟐𝟓. 𝟑𝟓

c. If twice as much was invested in the Mutual Fund as in the Money Market, what would the equation
(the model) look like?

𝑴𝒐𝒏𝒆𝒚 𝑴𝒂𝒓𝒌𝒆𝒕 𝑨 = 𝟏𝟎𝟎𝟎𝒆.𝟎𝟖𝟔𝟕𝒕

𝑴𝒖𝒕𝒖𝒂𝒍 𝑭𝒖𝒏𝒅 𝑩 = 𝟐𝟎𝟎𝟎𝒆.𝟎𝟔𝟗𝟑𝒕
𝑽(𝒕) = 𝟏𝟎𝟎𝟎𝒆.𝟎𝟖𝟔𝟕𝒕 + 𝟐𝟎𝟎𝟎𝒆.𝟎𝟔𝟗𝟑𝒕
d. What factors should the investor consider before changing the amount invested in each of the
accounts?

Before changing the amount invested in each account, the investor should consider the return on
each account, the trends of the different accounts, and the possible factors that may change the
returns of the accounts. If the returns were a fixed percentage or fixed amount, than there would
not be much to consider. However, if the returns are fluid, than these are the factors that need to
be considered. If the investor invested too much into an account that did worse than the account
that they invested less in, the overall value of the two accounts would decrease.
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

10. Logarithmic Models

Projected Population of Hawaii
People (thousands) (p) Years Since 1995 (T)
1,187 0
1,257 5
1,342 10
1,553 20
1,812 30

Find the logarithmic model that best fits the above data. Evaluate the function at p = 1700 and interpret
your results.
𝑻(𝒑) = −𝟒𝟗𝟔. 𝟎𝟏𝟏 + 𝟕𝟎. 𝟏𝟕𝟒 𝐥𝐧 𝒑 I used the TI-84 to find the equation.
𝑻(𝟏𝟕𝟎𝟎) = −𝟒𝟗𝟔. 𝟎𝟏𝟏 + 𝟕𝟎. 𝟏𝟕𝟒 𝐥𝐧 𝟏𝟕𝟎𝟎 = 𝟐𝟓. 𝟗𝟕

Explain, in your own words, the relationship between the exponential model and the logarithmic model, in general.
Exponential and logarithmic functions are inverse functions of each other. The number e is the base
for the natural logarithm. Because they are inverses of each other, logarithmic growth is very slow
and extends further out horizontally. Exponential growth increases more rapidly over time and
extends further up vertically. Furthermore, when graphed, the logarithmic function is a reflection of
the exponential function over the line f(x)=x, therefore, the axes are swapped.

11. Exponential Models

Percentage of TV Homes with a DVD Player
Years since 1995 Homes with a DVD Player (percent)
(t) (D)
1 20.8
2 36.0
3 48.7
4 58.0
5 64.6
6 68.6
7 71.9
8 75.0
9 77.1
10 79.0
11 81.0
12 82.2
13 84.2
14 84.6

a. Use logarithmic regression to find the logarithmic function (the logarithmic model) that best fits
Hattie Burford
MATH 631 Mathematics for Management
Dr. Stack
Project 2- Mathematical Modeling

the data.

𝑫(𝒕) = 𝟐𝟏. 𝟕 + 𝟐𝟒. 𝟗𝟐𝟓 𝐥𝐧 𝒕

b. Solve the equation for the input variable, t.

𝑫(𝒕) = 𝟐𝟏. 𝟕 + 𝟐𝟒. 𝟗𝟐𝟓 𝐥𝐧 𝒕

𝑫 − 𝟐𝟏. 𝟕 = 𝟐𝟒. 𝟗𝟐𝟓 𝐥𝐧 𝒕 Subtract 21.7 from both sides
𝑫−𝟐𝟏.𝟕
= 𝐥𝐧 𝒕 Divide both sides by 24.925
𝟐𝟒.𝟗𝟐𝟓
𝑫−𝟐𝟏.𝟕
𝒆 𝟐𝟒.𝟗𝟐𝟓 = 𝒕 take the e^ of both sides

c. Determine the year in which 90 percent of TV homes were expected to have DVD
Players. Do you think this prediction will be accurate? Explain your response.

𝑫−𝟐𝟏.𝟕
𝒆 𝟐𝟒.𝟗𝟐𝟓 = 𝒕
(𝟗𝟎)−𝟐𝟏.𝟕
𝒆 𝟐𝟒.𝟗𝟐𝟓 =𝒕 Substitute 90 in for D

𝒆𝟐.𝟕𝟒 = 𝐭 Simplify

𝟏𝟓. 𝟒𝟖𝟕 = 𝒕
This suggests that there should be 90 percent of TV homes with DVD players in the year
2010. We can see looking at the table that the increase of DVD players in homes slows down
over time. The reason for this may be many different things such as XBOX and
PlayStations offering a DVD player as well as Blue Ray players becoming more popular.
Furthermore, the recent boom of smart TV’s and apps such as Netflix and Hulu give
consumers even more of a reason to stray away from DVD players. Therefore, I don’t think
this prediction is very accurate, and it would be more likely to see this percentage flat line,
if not decrease.