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The Win Big Gambling Club promotes gambling junkets from a large Midwestern city to casinos in the Bahamas. The club has budgeted up to $
The Win Big Gambling Club promotes gambling junkets from a large Midwestern city to casinos in the Bahamas. The club has budgeted up to $ per week for local advertising. The money is to be allocated among four promotional media: TV spots, newspaper ads, and two types of radio advertisements. Win Bigs goal is to reach the largest possible highpotential audience through the various media. The following table presents the number of potential gamblers reached by making use of an advertisement in each of the four media. It also provides the cost per advertisement placed and the maximum number of ads that can be purchased per week.
Medium Audience Cost Per Ad Maximum Ads
Reached Per AD per Week
Tv spot minute
Daily newspaper fullpage
ad
Radio spot seconds,
primetime
Radio spot minute
afternoon
Win Bigs Contractual arrangements require that at least radio spots be placed each week. To
ensure a broad scoped promotional campaign, management also insists that no more than $ be spent on radio advertising every week.
Microsoft Excel Answer Report
Target Cell Max
Cell Name Original Value Final Value
$F$ Audience
Adjustable Cells
Cell Name Original Value Final Value
$B$ number of units TV spots
$C$ number of units news paper ads
$D$ number of units prime time ads
$E$ number of units afternoon spots
Constraints
Cell Name Cell Value Formula Status Slack
$F$ min radio spots $F$$H$ Not Binding
$F$ max tv $F$$H$ Not Binding
$F$ max news paper $F$$H$ Binding
$F$ max prime time radio $F$$H$ Not Binding
$F$ max afternoon radio $F$$H$ Not Binding
$F$ budget $F$$H$ Binding
$F$ max radio$ $F$$H$ Binding
Microsoft Excel Sensitivity Report
Adjustable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$ number of units Tv spots
$C$ number of units news paper ads E
$D$ number of units prime time ads E
$E$ number of units afternoon spots E
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price RH Side Increase Decrease
$F$ min radio spots E
$F$ max tv E
$F$ max news paper
$F$ max prime time radio E
$F$ max afternoon radio E
$F$ budget
$F$ max radio$
Answer the following questions ai using the output please be brief. If there are two possible answers one will suffice. Where necessary a range analysis must be shown. a What is the optimal solution in words
b The budget was reduced to Evaluate the effect.
c Winbig can now buy a maximum of newspaper ads. Evaluate the effect? Explain
d Assume the audience for news papers ads went down by Evaluate the effect?
e The company decides to do one afternoon radio spot. Evaluate the effect
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