Problem 1

Suppose the charity decided to maximize total donations, given its budget limit on advertising. How should advertising funds be spent, and what amount will be raised in donations as a result? use excel solver to solve this

A well-known charity is interested in conducting a TV campaign to solicit contributions. The campaign will be conducted in two metropolitan areas. Past experience indicates that, in each city, the total contributions are a function of the amount of money expended for TV advertisements. Specifically, the charity has estimated response functions that indicate the percentage of the population making a donation as a function of the dollars spent on TV advertisement. The form of this function is y=1ex, where x represents the advertising expenditure (in thousands of dollars), y represents the percentage donating, and is a parameter that differs from city to city. The charity has earmarked a fund of $400,000 for advertising between the two cities and wants to determine the best allocation of these funds