Question: You work for CNN . com and are in charge of selling banner ads for next Friday. You contract with companies to plan how many
You work for
CNNcom and are in charge of selling banner ads for next Friday. You contract
with companies to plan how many visitors to the CNN website are shown ads for their products.
A visitor being exposed to one of the company's ads is known as an impression. You are paid
based on how many of the impressions lead to a click through to the company's website.
Factoring in the clickthrough rates and the revenue per click through, you have calculated the
following expected revenue per impression for two sections of the website Business and Sports
for three of your client companies Nike Oracle, and P&G :
Expected Revenue per Impression $
Maximum Total Impressions by Section
Business
Sports
Your contracts specify lower and upper bounds on how many total impressions you will allocate
to each client company across both sections Each company must be allocated at least
impressions but no more than
Your job is to build a linear program to maximize revenue from these banner ads. Provide the
algebraic model to solve this problem. Be sure to define your decision variables. Do not solve the
problem, just model it
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