Question: The ad bid data in Appendix A is in the Question 1 worksheet of the Ad Bids workbook on Blackboard and includes a set of

The ad bid data in Appendix A is in the Question 1 worksheet of the Ad Bids workbook on
Blackboard and includes a set of representative bids for one search, sorted by their order of arrival.
If the ads are selected in the order they received, i.e., Ad # from smallest (1) to highest (30), which
ads would be selected? What is the profit?
Answer: Ads 15, and 19% of 6, and the profit is 140.24. I would try hard to come up with this
answer, but if you cant, its ok to continue with the rest of the assignment.
2. Suppose that you instead choose ads based on the bid amount, from highest to lowest. Which ads
should you choose? What is your profit?
3. Which bids should you choose to maximize profits? What is the profit?
4. We have assumed that the typical screen is 1024 wide by 768 high. However, screen sizes have
increased over time (thanks in part to Moores Law). If we now assume the typical screen is 1152
wide by 864 high, what bids should we choose now to maximize profits? What is the profit? Did you
need to re-sort the bids? Why or why not?
5. Continuing to assume the screen size is now 1152 x 864, another potential way to increase profits is
to shrink the border from 10 pixels on each of the four sides of the ad to just 5 pixels on each side.
Which bids should you choose to maximize profits? What is the profit? Did you need to re-sort the
bids? Why or why not?
Be sure and answer the extra questions at the end of questions 4 and

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