GROUP WORK 3, SECTION 2.1 Connect the Dots A company does a study on the effect of production value p of an advertisement on its consumer approval rating A. After interviewing eight focus groups, they come up with the following data: Production Value $1000 $2000 $3000 $3500 $3600 $3800 $4000 $5000
Consumer Approval 32% 33% 46% 55% 61% 65% 69% 70%
Assume that A p gives the consumer approval percentage as a function of p.
1. Estimate A $3500 . Is this likely to be an overestimate or an underestimate?
2. Interpret your answer to Problem 1 in real terms. What does your estimate of A $3500 tell you?
3. What are the units of A p ?
4. Estimate A $3550 . Is your estimate better or worse than your estimate of A $3500 ? Why?