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The Max X. Posure Advertising Agency is conducting a 10-day advertising cam- paign for a locał department store. The agency has determined that the most effective campaign would possibly include placing ads in four media: daily newspaper, Sunday newspaper, radio, and television. A total df $8000 has been made available for this campaign, and the agency would like to distribute this in $1000 increments across the media in such a fashion that an advertising exposure index is maximized. Research that has been conducted by the agency permits the following estimates to be made of the exposure per each $1000 expenditure in each of the media. Thousands of Dollars Spent Media 2 3 4 5 6 7 46 82 82 Daily newspaper Sunday newspaper 24 37 59 72 80 15 55 70 75 90 95 95 95 Radio 20 30 45 55 60 62 63 63 Television 20 40 55 65 70 70 70 70 a. How much should the agency spend on each medium in order to maximize the department store's exposure? b. How would your answer change if only $6000 were budgeted? c. How would your answers in parts (a) and (b) change if television were not considered as one of the media? The Max X. Posure Advertising Agency is conducting a 10-day advertising cam- paign for a locał department store. The agency has determined that the most effective campaign would possibly include placing ads in four media: daily newspaper, Sunday newspaper, radio, and television. A total df $8000 has been made available for this campaign, and the agency would like to distribute this in $1000 increments across the media in such a fashion that an advertising exposure index is maximized. Research that has been conducted by the agency permits the following estimates to be made of the exposure per each $1000 expenditure in each of the media. Thousands of Dollars Spent Media 2 3 4 5 6 7 46 82 82 Daily newspaper Sunday newspaper 24 37 59 72 80 15 55 70 75 90 95 95 95 Radio 20 30 45 55 60 62 63 63 Television 20 40 55 65 70 70 70 70 a. How much should the agency spend on each medium in order to maximize the department store's exposure? b. How would your answer change if only $6000 were budgeted? c. How would your answers in parts (a) and (b) change if television were not considered as one of the media?
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Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Posted Date:
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