Applecore Children's Clothing is a retailer that sells high

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end clothes for toddlers

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ages

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$$primarily in shopping malls. Applecore also has a successful Internet

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based sales division. Recently Dave Walker, vice

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president of the e

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commerce division, has been given the directive to expand the company's Internet sales. walker commissioned a major study on the effectiveness of Internet ads placed on news web sites. The results were favorable: Current patrons who purchased via the Internet and saw the ads on news web sites spent more, on average, than did comparable Internet customers who did not see the ads.

With this new information on Internet ads, Walker continued to investigate how new Internet customers could most effectively be reached. One of these ideas involved strategically purchasing ads on news web sites prior to and during the holiday season. To determine which news sites might be the most effective for ads, Walker conducted a follow

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up study. An e

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mail questionnaire was administered to a sample of

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$$current Internet customers to ascertain which of

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$$news sites they regularly visit. The idea is that web sites with high proportions of current customer visits would be viable sources of future customers for Applecore products.

Walker would like to ascertain which news sites should be selected for ads. The problem is complicated because Walker does not want to count multiple exposures. So

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$$if a respondent visits multiple sites with Applecore ads or visits a given site multiple times, that respondent should be counted as reached but not more than once. In other words, a customer is considered reached if they have visited at least one web site with an Applecore ad

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Data from the customer e

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mail survey have begun to trickle in

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$$Walker is developing a prototype model based on the current survey results. So far,

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$$surveys have been returned. To keep the prototype model manageable, Walker wants to proceed with model development using the data from the

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$$returned surveys and using only the first

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$$news sites in the questionnaire. The costs of ads per week for the

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$$web sites are given in the following table, and the budget is $

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$$per week. For each of the

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$$responses received, the

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$$web sites visited regularly are shown in the excel file. For a given customer

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web site pair, a one indicates that the customer regularly visits that web site and a zero indicates that the customer does not regularly visit that site. Applecore can choose which websites to select whether a site is operated or not. A customer is "Counted" if one of the websites that a customer regularly visits is "Chosen". Therefore "Counted" is a binary decision variable which is equal to one if at least one of the webistes that customer engaged with is "Chosen". The cost per week to operate each website is shown.

The model has been built and solved for a budget of $

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$$for you. LastName

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$$points

What is the maximum number of customers reached for the $

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$$budget$?$

Type your answer...

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Perform a sensitivity analysis on the budget for values from $

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$$to $

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$$in increments of $

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$$In other words, create a table to capture the objective value for ea of those budget values. Also, calculate the percentage reach

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number reached

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$$total customers

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$$for each row. You might also want to create graph from this data.

True or false: the percentage reach increasing for every increase in budget.

True

False

$3$

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$$points

True or false: you would recommend a budget of $

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$$over a budget of $

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$$

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$$if you want to maximize the percentage of customers reached.

True

False

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True or false: you would recommend a budget of $

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$$k over a budget of $

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$$if you want to maximize the percentage of customers reached.

True

False

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$$points

Suppose that Applecore will generate revenues of $

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$$for each customer reached. At what budget from your data table in Question

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$$does this system become unprofitable? Assume that the only cost is the operation of the web sites. Give your answer in $

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e

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Type your answer...FirstName HW

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xlsx darr

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There are $2$ steps to solve this one.