The Advertising Manager for Roadside Restaurants, Inc If She Feels That There Is a 60 Percent Chance

question 24

Multiple Choice

The advertising manager for Roadside Restaurants, Inc., needs to decide whether to spend this month's budget for advertising on print media, television, or a mixture of the two. She estimates that the cost per thousand "hits" (readers or viewers) will vary depending upon the success of the new cable television network she plans to use, as follows: $$\begin{array} { | l | l | l | l|} \hline { \text { Strategy } } & { \text { Cable Network } } \\\hline & \text { Successful } & &\text { Failure } \\ \hline \text { Print } & \$ 10 && 10 \\\hline \text { Mixed } & 4 & &14 \\\hline \text { Television } & 1 && 21 \\\hline\end{array}$$ If she feels that there is a 60 percent chance that the new cable network will be successful, what is her expected cost (per thousand "hits") under certainty?

• A) $3.40
• B) $4.60
• C) $8.00
• D) $9.00
• E) $10.00

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Definitions:

Petty Cash Fund

A minimal sum of money kept in reserve for covering minor costs that aren't worth issuing a check for.

Petty Cash Custodian

The person responsible for managing a small amount of cash for minor, routine business expenses.

Postage Due

The fee charged for delivering mail for which sufficient postage has not been prepaid by the sender.

Replenish

The act of refilling or restoring to its original level, often used in reference to inventory or petty cash funds.