Question: A firm has constructed a linear optimization model to determine the optimal numbers and types of ads to buy to maximize total reach. Buying fractions

A firm has constructed a linear optimization model to determine the optimal numbers and types of ads to buy to maximize total reach. Buying fractions of ads is allowed. Here is a sensitivity report for the model at the optimal solution.

A firm has constructed a linear optimization model to determine the optimal

1. How many decision variables are there? 2. How many binding constraints are there? 3. How many non-binding constraints are there (not including any non-negativity constraints)? 4. The model currently specifies a budget of $30,000 for TV ads. If this requirement were changed to a budget of $30,010 for TV ads, then maximum total reach would increase by _______ customers. 5. The model currently specifies a total budget of $65,000. If the total budget were changed to $70,000, then maximum total reach would increase by _______ customers.

6. The model currently specifies that radio reach is 600 customers per ad. If radio reach were changed to 2000 customers per ad, then the firm should buy _______ radio ads. 7. The model currently specifies that radio reach is 600 customers per ad. If radio reach were changed to 300 customers per ad, then the firm should buy _______ radio ads. 8. The model currently shows that an optimal decision is to purchase no Eve TV ads. If the firm were to purchase 1 Eve TV ad anyway, then maximum total reach would decrease by ______ customers. 9. The model currently shows that an optimal decision is to purchase no Eve TV ads. If the firm were to purchase 1 TV ad anyway, then maximum total reach would be ______ customers.

Variable Cells \begin{tabular}{ccrrrrr} \hline & & \multicolumn{2}{c}{ Final } & Reduced & Objective & \multicolumn{2}{c}{ Allowable Allowable } \\ Cell & Name & Value & Cost & Coefficient & Increase & Decrease \\ \hline \$B\$19 & Buy (ad) Day TV & 12 & 0 & 2000 & 1E+30 & 750 \\ \hline \$C19 & Buy (ad) Eve TV & 0 & -1800 & 3000 & 1800 & 1E+30 \\ \hline \$D\$19 Buy (ad) Radio & 30 & 600 & 600 & 1E+30 & 600 \\ \hline \end{tabular} Constraints

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