Question

2., The Max X. Posure Advertising Agency is conducting a lO-day advertising cam- paign for a local department store. The agency has determined that the most effective campaign would possibly include placing ad newspaper, radio, and television. A total df $8000 has been made available for this campaign, and the agency would like to distribute this in S1000 increments across the media in such a fashion that an advertising exposure index is maximized. Research that has been conducted by the agency pemits the following estímates to be made of the exposure per each S1000 expenditure in each of the media. a: daily newspaper, Sunday Thousands of Dollars Spent Media 8 Daily newspaper24 374659 72 80 82 82 70 45 95 62 70 95 63 70 95 63 70 75 Sunday newspaper Radio Television 15 20 20 30 40 90 60 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?

Answer 1

det each vasiable media ao pac sent α stage in the foamut lat lo», det state VXla amount of budjet himainthnsta. the deeision vaid the amt of b medi Staae ( News papen) 2 6 2y - 2 10 2ฯ 37 3024 31 - S72 76 24 37 6 59 71 8081 - 810 24 37 4ś g. 72 5.825217058 82 0 %2 stage 2 CSunday e pa 2 3 5 6 8 0 2. 0 2. y S1 61 92 4 75 ς 172 74 101 l. 9,90 I 6

Stage 3 (Ra 3 '0 2. O SS 2 6127 1 y uo 8462 3

3 3 6 121 3413 139 13V 120 V 7 Soluhun 2 j° y we will see stage 3 tabg TF