Question

An analyst for a new company used the first three years of revenue data to project future revenue for the company. The analyst predicts the function f(x)=-2x^5+6x^4-x^3+5x^2+6x+50 will give the revenue after x years. Should the CEO expect the company to be​ successful? Explain.

Answer 1

Using limits, it is found that since $\lim_{x \rightarrow \infty} f(x) < 0$, the company is expected to operate at a loss, hence it is not expected to be successful.

The revenue function is given by:

$f(x) = -2x^5 + 6x^4 - x^3 + 5x^2 + 6x + 50$

Limit:

• The projected revenue over the long-term is given by the limit of f(x) as x goes to infinity.

Then:

$\lim_{x \rightarrow \infty} f(x) = \lim_{x \rightarrow \infty} -2x^5 + 6x^4 - x^3 + 5x^2 + 6x + 50 = \lim_{x \rightarrow \infty} -2x^5 = -2(\infty)^5 = -\infty$

Since the limit is negative, the company is expected to operate at a loss, hence not being successful.

To learn more about limits, you can take a look at https://brainly.com/question/24821129