The sales S(in thousands if units) of a product after x hundred dollars is spent on advertising is given by S=10(1-e^kx). Find S as a function of x if 2500 units are sold when $500 is spent on advertising.

Adori,

The form of the function is S = 10(1-e^{kx}) and you are told that if 2500 units are sold when $500 is spent on advertising. You need to get the units correct so when x = 5 then S = 2.5. Substitute these values into the expression and solve for k.

Penny

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