Minimise cost of achieving minimum total exposure

Assignment Help Basic Statistics

Reference no: EM13149176

Marketing managers have various media alternatives, such as radio, tv, magazines etc. in which to advertise and must determine which to use, the number of insertions in each and the timing of insertions to maximise advertising effectiveness within a limited budget. Suppose that three media options are available to Kernan Services Corporation: radio, tv and magazine. The following table provides some information about costs, exposure values, and bounds on the permissible number of ads in each medium desired by the firm. The exposure value is a measure of the number of people exposed to the advertisement and is derived from market research studies, and the client's objective is to maximise the total exposure value. The company would like to achieve a total exposure value of at least 90,000

Medium cost/ad Exposure value/ad Min units Max units
Radio $500 2000 0 15
TV $2000 4000 10
magazine $200 2700 6 12

How many of each type of ad should be placed in order to minimise the cost of achieving the minimum required total exposure. Use the auxiliary variable approach to model this problem and write a short memo to the marketing manager explaining the solution and sensitivity information.

Reference no: EM13149176

Questions Cloud

Why are undefined media more desirable : Why are undefined media more desirable than defined media, especially when it is a selective or differential media? for example, eosin methylene blue agar is a selective undefined medium. Why is that formulation desirable?

Calculate the change in energy of the gas : A gas expands and does P-V work on the surroundings equal to 325 J. At the same time, it absorbs 161 J of heat from the surroundings. Calculate the change in energy of the gas.

Transactions for the current fiscal year : 5% on the first day of the current fiscal year, 1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for 1,225,000, Present entries to record the following transactions for the current fiscal year:

What is the expected return on this investment : Further you know that there is a 35% chance for a strong economy and a 50% chance for average growth. What is the expected return on this investment?

Minimise cost of achieving minimum total exposure : Use the auxiliary variable approach to model this problem and write a short memo to the marketing manager explaining the solution and sensitivity information.

Evanec percentage flotation cost : The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock can be sold to net $32.40 per share. What is Evanec's percentage flotation cost, F?

How many moles of o2 will be produced : Given the following reaction: 4 KO2 + 2 H2O + 4 CO2 ==> 4 KHCO3 + 3 O2 How many moles of O2 will be produced if 3.12 moles of CO2 react completely?

Formula for computing book value per share : The ledger of JFK, Inc. shows common stock, common treasury stock, and no preferred stock. For this company, the formula for computing book value per share is?

Are monopolies and oligopolies : Are monopolies and oligopolies (firms demonstrating power) always bad for society?

User Account

All Pages