Question

In: Statistics and Probability

Two advertising media are being considered for the promotion of a product. Radio ads cost $480...

Two advertising media are being considered for the promotion of a product. Radio ads cost $480 each, while newspaper ads cost $550 each. The total budget is $20,000 per week. The total number of ads should be at least 30, with a max of 5 newspaper ads. Each newspaper ad reaches 8,000 people, while each radio ad reaches 5,000 people.

Let R = # of radio ads

Let P = # of newspaper ads

Max 5000 R + 8000P

s. t.

480R + 550P <= 20000 cost of ads

R + P >= 30 total # of ads

P <= 5 max number of newspaper ads

R,P >= 0

Round your answers to the highest whole numbers

The company wishes to reach as many people as possible while meeting all the constraints stated, what is maximum reach?

How many ads of each type should be placed?

Expert Solution

1)

By using solver we can get the answer

Maximum reach = 215000

Other option is that since we know P can only go as maximum as P =5, we can only increase R till the 20000 budget increase

i.e

480 * R + 550 * 5 <= 20000

480* R <= 17250

R <= 35.93

Since R can only be integer it should be 35 and P =5, Now we can calculate audience.

2)

Ads of each type =

Radio = 35

Newspaper = 5

Please revert back in case of any doubt.

Please upvote. Thanks in advance.

orchestra answered 1 year ago

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