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Unformatted text preview: UF-ESI-6321UF-ESI-6321-02-06.xmcdpage 1 of 22.6An athletic footwear company is attempting to estimate the sales that will result from atelevision advertisement campaign of its new athletic shoe. The contribution to earnings from eachpair of shoes sold isRevenue40:=Suppose that the probability that a television viewer will watch the advertisement (as opposed toturn his/her attention elsewhere) ispwatch40%:=Furthermore, suppose thatpviewers1%:=of viewers who watch the advertisement on a local television channel will buy a pair of shoes. Thecompany can buy television advertising time in one of the time slots according to Table 2.25.TABLE 2.25 Television Advertising Costs and ViewersTime SlotCost of Advertisement in Dollars per MinuteEstimated Number of ViewersMorning120,000.00$ 1000000Afternoon200,000.00$ 1300000Prime Time400,000.00$ 3200000Late Evening150,000.00$ 800000i1 4..:=Morning1:=Afternoon2:=PrimeTime3:=LateEvening4:=TimeiMorningAfternoonPrimeTimeLateEvening:=Costi120000200000...
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- Spring '07