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The advertising director of a large retail store in Columbus, Ohio, is considering three advertising media possibilities: (1) ads in the Sunday Columbus Dispatch newspaper, (2) ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and (3) ads on Columbus' WCC-TV station. She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new- customer exposure level of 5% in the city and 3% in the northwest suburbs. The Dispatch ads have corresponding exposure levels per ad of 3.5% and 3%, respectively, while the trade magazine exposure levels per ad of 0.5% and 196, respectively. The relevant costs are $1,000 per Dispatch ad, $300 per trade magazine ad, and $2,000 per TV ad. The advertising policy is that no single media type should consume more that 45% of the total amount spent. Find the advertising strategy that will meet the store's objective at minimum cost. A political candidate is planning his media budget for an upcoming election. He has $90,500 to spend. His political consultants have provided him with the following estimates of additional votes as a result of the advertising effort: For every small sign placed by the roadside, he will garner 10 additional votes. For every large sign placed by the roadside, he will garner 30 additional votes. For every thousand bumper stickers placed on cars, he will garner 10 additional votes, and For every hundred personal mailings to registered voters, he will garner 40 additional votes, and For every radio ad heard daily in the last month before the election, he will garner 485 additional votes. The costs for each of these advertising devices, along with the practical minimum and maximum that should be planned for each, are shown on the following table. How should the candidate plan to spend his campaign money? Cost Minimum Maximum Advertising Medium $30 40 100 Bumper stickers (thousands) $81 500 800 Personal mailings (hundreds) $1.000 3. 12 Radio ads (per day! $25 1100 500 Small road side signs $60 50 300 Large road side signs 3-14 An investor wishes to invest some or all of his $12.5 million in a diversified portfolio through a commercial lender. The types of investments, the expected interest per year, and the maximum allowed percentage investment he will consider are shown on the following table. He wants at least 35% of his investments to be in nonmortgage instruments and no more than 60% to be in high-yield (and high-risk) instruments (i.e. expected interest > 8%). How should his investment be diversified to make the most interest income? Expected Interest Maximum Allowed Investment 17.00% 20% Low-income mortgage loans 4096 6.2596 Konventional mortgage loans 2596 Government sponsored mortgage loans 8.25% 12% 5.7596 Bond investments 8.7595 1598 Stock investments 9/50% 1109 Futures trading The advertising director of a large retail store in Columbus, Ohio, is considering three advertising media possibilities: (1) ads in the Sunday Columbus Dispatch newspaper, (2) ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and (3) ads on Columbus' WCC-TV station. She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new- customer exposure level of 5% in the city and 3% in the northwest suburbs. The Dispatch ads have corresponding exposure levels per ad of 3.5% and 3%, respectively, while the trade magazine exposure levels per ad of 0.5% and 196, respectively. The relevant costs are $1,000 per Dispatch ad, $300 per trade magazine ad, and $2,000 per TV ad. The advertising policy is that no single media type should consume more that 45% of the total amount spent. Find the advertising strategy that will meet the store's objective at minimum cost. A political candidate is planning his media budget for an upcoming election. He has $90,500 to spend. His political consultants have provided him with the following estimates of additional votes as a result of the advertising effort: For every small sign placed by the roadside, he will garner 10 additional votes. For every large sign placed by the roadside, he will garner 30 additional votes. For every thousand bumper stickers placed on cars, he will garner 10 additional votes, and For every hundred personal mailings to registered voters, he will garner 40 additional votes, and For every radio ad heard daily in the last month before the election, he will garner 485 additional votes. The costs for each of these advertising devices, along with the practical minimum and maximum that should be planned for each, are shown on the following table. How should the candidate plan to spend his campaign money? Cost Minimum Maximum Advertising Medium $30 40 100 Bumper stickers (thousands) $81 500 800 Personal mailings (hundreds) $1.000 3. 12 Radio ads (per day! $25 1100 500 Small road side signs $60 50 300 Large road side signs 3-14 An investor wishes to invest some or all of his $12.5 million in a diversified portfolio through a commercial lender. The types of investments, the expected interest per year, and the maximum allowed percentage investment he will consider are shown on the following table. He wants at least 35% of his investments to be in nonmortgage instruments and no more than 60% to be in high-yield (and high-risk) instruments (i.e. expected interest > 8%). How should his investment be diversified to make the most interest income? Expected Interest Maximum Allowed Investment 17.00% 20% Low-income mortgage loans 4096 6.2596 Konventional mortgage loans 2596 Government sponsored mortgage loans 8.25% 12% 5.7596 Bond investments 8.7595 1598 Stock investments 9/50% 1109 Futures trading