A Company Is Considering Various Advertising Media to Promote Its

question 14

Essay

A company is considering various advertising media to promote its new toy.Pertinent information regarding potential customers reached and costs per advertisement is given below:
$\begin{array}{lccc} & \text { No. of Customers } \\\text { Media } & \begin{array}{c}\text { Maximum Times } \\\text { Reached }\end{array} & \begin{array}{c}\text { Cost per } \\\text { Available per Month }\end{array} & \text { Advertisement } \\ \text { Daytime TV } & 1000 & 10 & \$ 2000 \\\text { Evening TV } & 3000 & 8 & \$ 3500 \\\text { Daytime Radio } & 500 & 15 & \$ 1000 \\\text { Evening radio } & 750 & 15 & \$ 1500 \\\text { Newspaper } & 900 & 4 & \$ 500\end{array}$

Currently,the company has a monthly advertising budget of $150,000.The marketing department has imposed the following restrictions:
•No more than $20,000 may be spent on radio advertising each month.
•At least 5 TV ads must be used each month.
Use Excel to formulate and solve this problem to maximize monthly audience exposure.

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Definitions:

Mean Square Error

A measure of the average of the squares of the errors or deviations between estimated and true values.

Weighted Average Model

A calculation that assigns different weights to different elements of a dataset, resulting in an average that accounts for varying levels of importance.

Forecasts

Predictions or estimates of future events or conditions, often based on statistical analysis and modeling.

Exponential Smoothing Model

A forecasting technique for single-variable data that utilizes weights that decrease exponentially for previous observations.