Question: The preceding problem indicates how fewer alternatives can cause total cost to increase. This problem indicates the opposite. Starting with the solution to the advertising
The preceding problem indicates how fewer alternatives can cause total cost to increase. This problem indicates the opposite. Starting with the solution to the advertising selection problem in Example 7.6, add a new show, “The View,” which appeals primarily to women. Use the following constants and coefficients of exponents for the response functions to the various customer groups for this show: 5, 7, 10, 15, 35, 35 (constants); and 0.03, 0.03, 0.03, 0.08, 0.08, 0.08 (coefficients of exponents). Assume that each ad on “The View” costs $10,000. Make the appropriate changes in the model and rerun Solver. Comment on the changes to the decision variable cells. Then comment on the change to the total cost. In particular, explain how the total cost can change so much in the direction it changes.
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