A local television station has 20 open thirty-second advertising slots during their regularly scheduled programming each...

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A local television station has 20 open thirty-second advertising slots during their regularly scheduled programming each evening. The station is now selling advertising for election day in November. They could sell all the slots immediately for $4,500 each, but the station manager knows she may be able to sell slots at the last minute to political campaigns in tight races for a price of $8,000 each. The demand for these last-minute slots is estimated as follows: Demand for Last 8 10 11 12 13 14 15 16 17 Minute Ads Probability 0.05 0.05 0.10 0.15 0.20 0.15 0.10 0.10 0.05 0.05 Slots not sold in advance and not sold to political campaigns at the last minute can be sold to local advertisers at a price of $2,000. The manager would like to consider selling 3 – 12 slots upfront with the remaining available for last minute sales. Each simulation should have 1,000 trials. If the station manager would like to maximize expected revenue, how many advertising slots should be sold in advance? What is the highest expected revenue for that day? Create a Results Summary rерort and highlight the recommended simulation. A local television station has 20 open thirty-second advertising slots during their regularly scheduled programming each evening. The station is now selling advertising for election day in November. They could sell all the slots immediately for $4,500 each, but the station manager knows she may be able to sell slots at the last minute to political campaigns in tight races for a price of $8,000 each. The demand for these last-minute slots is estimated as follows: Demand for Last 8 10 11 12 13 14 15 16 17 Minute Ads Probability 0.05 0.05 0.10 0.15 0.20 0.15 0.10 0.10 0.05 0.05 Slots not sold in advance and not sold to political campaigns at the last minute can be sold to local advertisers at a price of $2,000. The manager would like to consider selling 3 – 12 slots upfront with the remaining available for last minute sales. Each simulation should have 1,000 trials. If the station manager would like to maximize expected revenue, how many advertising slots should be sold in advance? What is the highest expected revenue for that day? Create a Results Summary rерort and highlight the recommended simulation.

Answer rating: 100% (QA)

Result Next we have to find the average profit for upfront sales varying from ... View the full answer