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Nielsen ratings are very important to both advertisers and television programmers because the cost of television advertising time is based on these ratings. A show's

Nielsen ratings are very important to both advertisers and television programmers because the cost of television advertising time is based on these ratings. A show's rating is the number of households in Nielsen's sample that are tuned to that show divided by the number of television-owning households 15.6 million in the United States. One rating point represents 1 percent of the households (HHS) in the TV market. Nielsen's TV ratings are referred to as C3 and measure viewers who watch commercials live or watch recorded commercials up to three days later. A common measure of advertising efficiency is cost per thousand (CPM), which is the ad cost per thousand potential audience contacts. Advertisers also assess the cost per rating point by dividing the ad cost by the rating. These numbers are used to assess the efficiency of a media buy. Calculate the cost per thousand (CPM) and cost per point (CPP) for each program.

1 percent of all households in the TV market is (Round to the nearest whole number.)

Fill in the table below. (Round the # of households to the nearest whole number, the CPM to two decimal places, and the CPP to the nearest dollar.)

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