Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marketing Advantage, Inc. Marketing Advantage, Inc. (MAI) is a full-service market research company. MAI is being hired to interview registered voters in a district to

Marketing Advantage, Inc.

Marketing Advantage, Inc. (MAI) is a full-service market research company. MAI is being hired to interview registered voters in a district to gain insights into their opinions about certain issues. Each voter is to be interviewed in person. The cost of interviewing different types of voters varies due to the differences in proportion throughout the population. Based on previous studies, estimate of the interviewing cost for different types of voters is given below.

Cost Per Interview

Gender

Democrat

Republican

Independent

Male

$ 10.5

$ 8.5

$ 12.5

Female

$ 13

$ 12

$ 14

The contract called for MAI to conduct interviews under the guidelines given below. Please help MAI to develop an interview plan.

Part 1. Linear Programming (LP) Model

Please formulate a linear programming (LP) model. Make sure you clearly define the decision variables, write the objective, and constraints. Please follow the steps below.

Define the decision variables.

Write the objective.

Write the constraints (which are the contract requirements).

There must be at least 5,000 total interviews.

At least 1,200 Independent voters must be interviewed.

At least 2,000 males must be interviewed.

At least 1,800 females must be interviewed.

No more than 40% of those interviewed may be Democrats.

No more than 30% of those interviewed may be Republicans.

No more than 20% of those interviewed may be Republican males.

Each of the six types of voters must be represented by at least 10% of the total interviews.

Constraints on decision variables.

Part 2. Spreadsheet Model and Solver Model

Construct a spreadsheet (Excel) modeland solve the problem by Excel Solver. Generate the Answer Report and Sensitivity Report from Excel Solver. Answer the following questions based on the Answer Report and Sensitivity Report from Excel Solver.

What is the optimal interview plan?

How much is the optimal total interview cost?

Related to contract requirement #3 given in Part 1:If the minimum number of males interviewed increases by 1 (i.e., changes from 2,000 to 2,001), how much will the total interview cost change (please indicate whether it is an increase, a decrease, or no change)?

Related to contract requirement #4 given in Part 1:If the minimum number of females interviewed increasesby 1 (i.e., changes from 1,800 to 1,801), how much will the total interview cost change (please indicate whether it is an increase,a decrease,orno change)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hotel Finance

Authors: Anand Iyengar

1st Edition

0195694465, 978-0195694468

More Books

Students also viewed these Finance questions

Question

Why are employees considering union representation?

Answered: 1 week ago

Question

What is the total annual turnover rate?

Answered: 1 week ago