Question: Here is the background for the questions:Data from the customer e-mail survey have begun to trickle in. Walker wants to develop a prototype model based
Here is the background for the questions:Data from the customer e-mail survey have begun to trickle in. Walker wants to develop a prototype model based on the current survey results. So far, 53 surveys have been returned. To keep the prototype model manageable, Walker wants to proceed with model development using the data from the 53 returned surveys and using only the first 10 news sites in the questionnaire. The costs of ads per week for the 10 web sites are given in the following table, and the budget is $10,000 per week. For each of the 53 responses received, the 10 web sites visited regularly are shown below.
For a given customerweb site pair, a one indicates that the customer regularly visits that web site and a zero indicates that the customer does not regularly visit that site.
Please walk me through how to solve these questions on the excel spreadsheet.
- Develop a model that will allow Applecore to maximize the number of customers reached for a budget of $10,000 for one week of promotion.
- Solve the model. What is the maximum number of customers reached for the $10,000 budget?
- Perform a sensitivity analysis on the budget for values from $5,000 to $48,000 in increments of $4,000. Construct a graph of percentage reach versus budget. Is the additional increase in percentage reach monotonically decreasing as the budget allocation increases? Why or why not? What is your recommended budget? Explain.
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