Question

3. Optimization (30 pts) Your company has tasked you with determining how to invest $1,000 for advertising this month. You have the choice between two different options: Newspaper and Radio Ads. For every $1 you spend on Newspaper, you earn 50 Exposure Points. For every $1 you spend on Radio, you earn 80 exposure points. Your boss also mentions you must follow the following rules: • Va. You must spend at least $250 on Newspaper Ads You must spend at least $250 on Radio Ads You must spend at least twice as much on Newspaper ads as you did for Radio (ie Newspaper >= 2* Radio) • Your objective is to determine how much money ($) to spend on both Newspaper and Radio ads in order to maximize your exposure points. Answer: Newspaper $666.67 Radio: $333.33

Please show formula!

Answer 1

HNM + ON 000 А в с DE Decision Variables Amount spent on two types of ads Newspaper Radio Amount ol Objective function Maximize the exposure rating Constraints 0 >= o > OD >= 250 250 12 1000

B 1 3 Decision Variables Amount spent on two types of ads Newspaper Radio 4 Amount 5 Objective function 6 Maximize the exposure rating 7 =B4*50+C4*80 Constraints 9 =B4 >= 250 10 =C4 =B4 =2*C4 =B4+C4 250 1000

Solver Parameters Set Objective: SAST To: O Max O Min O Value of: By Changing Variable Cells: $B$4:$C$4 Subject to the Constraints: SAS12 = $C$12 SA$9:$A$11 >= $C$9:$C$11 $B$4:$C$4 >= 0 Add Change Delete Reset All Load/Save Make Unconstrained variables Non-Negative Select a Solving Method: Simplex LP Options Solving Method Select the GRG Nonlinear engine for Solver Problems that are smooth nonlinear. Select the LP Simplex engine for linear Solver Problems, and select the Evolutionary engine for Solver problems that are non-smooth. Help Solve Close

5. A B C D E Decision Variables 2 Amount spent on two types of ads Newspaper Radio 4 Amount 666.67 333.33 Objective function 6 Maximize the exposure rating 7 60000 Constraints 666.67 >= 250 10 333.33] >= 250 11 666.67 >= 666.66 12 1000 = 1000 00

Particular	Newspaper	Radio
Amount	666.67	333.33