Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. The following table shows the revenue and costs (in millions of dollars) for Johnson & Johnson. Year 2008 2009 2010 2011 2012 2013 2014

image text in transcribed

2. The following table shows the revenue and costs (in millions of dollars) for Johnson & Johnson. Year 2008 2009 2010 2011 2012 2013 2014 2015 Revenue 63,747 61,897 67,224 74,331 70,074 61,587 18,792 65,030 20,360 71,312 22,342 Cost 18,511 18,447 21,658 22,746 21,536 Let x = 8 correspond to 2008 a. Using the Year (x-value ) and Revenue, use cubic regression to find a model for Johnson & Johnson's Revenue, R(x) b. Using the Year (x-value) and Cost, use cubic regression to find a model for Johnson & Johnson's Revenue, C(x) c. Find Johnson & Johnson's profit function, I1(x), using parts a and b. d. In 2019, Johnson & Johnson had a profit of $54.503 billion (54,503 million). Use your profit function from lc to estimate the profits in 2019. Do you think your estimate is close to reality? 2. The following table shows the revenue and costs (in millions of dollars) for Johnson & Johnson. Year 2008 2009 2010 2011 2012 2013 2014 2015 Revenue 63,747 61,897 67,224 74,331 70,074 61,587 18,792 65,030 20,360 71,312 22,342 Cost 18,511 18,447 21,658 22,746 21,536 Let x = 8 correspond to 2008 a. Using the Year (x-value ) and Revenue, use cubic regression to find a model for Johnson & Johnson's Revenue, R(x) b. Using the Year (x-value) and Cost, use cubic regression to find a model for Johnson & Johnson's Revenue, C(x) c. Find Johnson & Johnson's profit function, I1(x), using parts a and b. d. In 2019, Johnson & Johnson had a profit of $54.503 billion (54,503 million). Use your profit function from lc to estimate the profits in 2019. Do you think your estimate is close to reality

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Authors: Frederic S. Mishkin, Stanley G. Eakins

5th edition

321280299, 321280296, 978-0321280299

More Books

Students also viewed these Finance questions

Question

How will you measure it?

Answered: 1 week ago

Question

What else could you do?

Answered: 1 week ago

Question

Who can help you?

Answered: 1 week ago