The discussion centers on maximizing the contract award represented by the function f(x) = 1/2 - 1/4|A - x|, where x is the delivery date. The goal is to find the value of A that maximizes this award, specifically within the range 5 < x < 7, which yields a reward of $500. Participants suggest taking the derivative of f(x) and setting it to zero to solve for A, while questioning the relevance of the specified range and its impact on the function's applicability.
PREREQUISITESStudents and professionals in mathematics, particularly those studying calculus and optimization, as well as contract managers seeking to understand reward maximization strategies.
ptlnguyen said:Homework Statement
Given:
f(x) = 1/2 - 1/4|A - x| where f(x) is total contract award, x = deliver date
if 5 < x < 7 then get a reward $500
Homework Equations
Find A such that it maximizes the contract award
The Attempt at a Solution
My approach: take derivative of f(x) and set it = 0 and solve for A
Am I correct? Thanks
I don't understand how that item of information fits in. Does it mean that the given formula for f(x) only applies outside that range?ptlnguyen said:if 5 < x < 7 then get a reward $500
Won't that depend on x? Or is it supposed to maximise the average award given some prob dist for x? (There's a very similar problem in another recent thread, and it's just as unclear.)Find A such that it maximizes the contract award