In: Statistics and Probability
. Fakeout, a fake vomit manufacturer is considering
buying advertisements in two magazines to try and sell more fake
vomit. Jokes ‘R Us has a readership of approximately 72,000 people
per monthly issue, while Magicians Monthly has a readership of
58,000 per issue. They estimate that about 21% of the people who
read Jokes ‘R Us also read Magicians Monthly. a. If Magicians
Monthly charges $1250 per advertisement, what is the CPM for their
magazine? 65% of Magicians Monthly readers are actual magicians.
What is the CPM for magicians only? (5pts) b. What is the net reach
if Fakeout runs a single ad in each magazine? (5pts) c. Fakeout
negotiates a deal where if they buy ads for 6 consecutive months
they will get a 20% discount for Magicians Monthly (use the price
from the first question. If they get a net reach of 215,000 what is
the average expected frequency for the entire campaign? (5pts) d.
If 15% of Jokes R’ Us readers are magicians, and 45% of those
magicians also read Magicians Monthly, what is the net reach for
magicians by placing a single ad in both magazines?
(5pts)