Model Formulation

Management Sciences Associates (MSA) is a Washington, D.C.-based market research firm that conducts consumer surveys. One of its clients is the national press service, which regularly conducts political surveys on issues of general interest. In a survey for the press service, the MSA determines that it must meet several requirements to draw valid statistical conclusions about a sensitive aspect of the new US immigration laws: 1. Survey at least 2,300 households in the United States in total. 2. Survey at least 1,000 households whose heads of family are 30 years of age or younger. 3. Survey at least 600 households, whose heads of family are between 31 and 50 years of age. 4. Ensure that at least 15% of those surveyed live in a state on the border with Mexico. 5. Ensure that no more than 20% of respondents who are 51 years of age or older live in a state that borders Mexico. MSA decides that all surveys should be conducted in person and estimates that the costs of reaching people in each age category and region are as follows: REGIN COSTO POR PERSONAS ENCUESTADAS ($) EDAD 31-50 $6.80 $7.25 EDAD S 30 $7.50 $6.90 Estado en la frontera en Mxico Estado sin frontera con Mxico EDAD 2 51 $5.50 $6.10 Reu MSA wants to meet all five sampling requirements at the lowest possible cost