Profit maximization: regression analysis
ABC Inc. determined through regression analysis that its sales (S) are a function of the amount of advertising (measured in units) in two different media. This relationship is given by the following equation (X=newspapers, Y=magazines): S(X,Y) = 200X + 100Y - 10Xsq - 20Ysq + 20XY 1. What is the level of newspaper and maga