Questions: The optimization job

-Pick F that maximizes the expected profit (i.e. optimization)

-a and b need to be estimated from data

-If a=2, b=0, M=2, and P=4. What's the optimal value for F?

-If a=2, b=1, M=2, and P=4. What's the optimal value for F?

Note: "exp" in the purchase probability equation means exponential.