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Question 1 . Use Solver to make Internet advertising recommendations. In your analysis, consider several scenarios: Scenario a: Optimal budget and allocation with no constraints.
Question Use Solver to make Internet advertising recommendations. In your analysis, consider several scenarios:
Scenario a: Optimal budget and allocation with no constraints. How do recommendations differ from the initial budget, country per country? Explain these differences.
Scenario b: Optimal allocation, but top management will not allow an increase in the total advertising budget. Hint: In Solver, add the following constraint: Ccurrent budget
Scenario c: Although the spreadsheet provides estimated gross margins per customer for the first six months of the relationship, these figures might be too shortviewed. If customer acquisition represents a longterm investment, its benefits should be measured beyond the first few months. Multiply all gross margins by and rerun the optimization with no constraints Interpret the differences.
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