1. (10-points) Using the information below:

a. Calculate the carry-over co-efficient b. Calculate the total sales effect c. Calculate the estimated carry-over effect in dollars from an ad run in period 2. 2. (10-points) Advertising elasticity a. Calculate the advertising elasticity for the given data b. Based on this elasticity, what is the expected sales impact in dollars for each 1% increase in the ad spend?

Period	1	2	3
Sales	$12.0M	$12.0M	$12.7M
Ad Spend	$175.0MM	$175.0MM	$225.0MM
Elasticity
Expected Sales per %1 increase in ad spend

M = Million, MM = thousands

3.(5-points) As the marketing manager for a new line of window coverings, you decide to run an advertising campaign for your product in the following media with the following weekly reach and frequencies. What is the total advertising weight in GRPs? Show your work.

Media	Reach	Frequency
Newspaper	50%	4
Radio	30%	25
TV	35%	12
Direct Mail	70%	1