Formulate an lp model for this problem

Assignment Help Basic Statistics
Reference no: EM13910069

Problem-

A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing amounts of advertising.

Media & No of Ads

No of New Customers Reached

Cost per Ad

Newspaper: 1-10

900

$1,000

Newspaper: 11-20

700

$900

Newspaper: 21-30

400

$800

Television: 1-5

10,000

$12,000

Television: 6-10

7,500

$10,000

Television: 11-15

5,000

$8,000

For instance, each of the first 10 ads the company place in newspapers will cost $1000 and is expected to reach 900 new customers. Each of the next 10 newspaper ads will cost $900 and is expected to reach 700 new customers. Note that the number of new customers reached by increasing amount of advertising decreases as the advertising saturates the market. Assume the company will purchase no more than 30 newspaper ads and no more than 15 television ads.

Formulate an LP model for this problem to maximize the number of new customers reached by advertising.

Reference no: EM13910069

Questions Cloud

How many names would you need to pull out of the hat : Without looking, how many names would you need to pull out of the hat to be sure you get two girls? How many names would you need to pull out of the hat to be sure you get either two boys or two girls
Compute the probability of observing a sample proportion : Suppose we wish to use the poll's results to justify the claim that fewer than 20 percent of business executives feel. Calculate the probability of observing a sample proportion of .15 or less. That is, calculate P( pˆ .15).
What is the company wacc : What is the company's cost of equity according to CAPM, if the U.S. T-bond yield is 2.00 %, the long-term market risk premium is 7% and the company's levered beta is 1.2?
What is the total pressure : Sample of dry gas 25c has the following composition 0.8904g of N2 0.2741g of O2 0.0152g of Ar 0.00107g of CO2 R=0.0821 What are the partial pressure for each component in the mixture? What is the total pressure?
Formulate an lp model for this problem : A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for advertising. Formulate an LP model for this problem to..
Determining the density of copper : If the copper is drawn into wire whose diameter is 8.00mm , how many feet of copper can be obtained from the ingot? The density of copper is 8.94 g/cm3.
Calculate the probability of observing a sample proportion : Suppose we wish to use the results of this survey to justify the claim that more than 70 percent. Calculate the probability of observing a sample proportion of .75 or more. That is, calculate P( pˆ > .75).
How can the company connect all of its offices to the intern : How can the company connect all of its offices to the Interne
Compute one forward rate curve based on the spot rate curve : Why do you think negative interest rates are being observed in the market. What recent events are making the interest rates to become negative - Calculate the z-spread for the bonds issued by Ford Motor Company available in the Excel Spreadsheet..

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd