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# Business Computing - Assignment 3

PGP 21 2017
Submit by
Date: 08/09/2017 Marks 28 Marks
Time: 10 AM

This assignment is an individual exercise and you are expected to complete this on your own
without any consultation
File submission instruction
Name the solution file as RollNo_A3_PGP21-BC (eg. 000_A3_PGP21-BC).

## Note: This assignment covers topic covered in class post mid-term

Instructions: Download the file Data_BC21_Assignment3.xlsx for the following exercises from VC.
Create a copy of the original worksheet before starting with each question and name each worksheet
as directed.
1. The marketing group has allocated a \$225,000 budget for the radio promotion that it has
planned as a part of the product launch for Shoes4U.The marketing group has provided you
with a worksheet that shows the cost estimates for producing and placing radio ads with the
three major radio networks that the marketing manager plans to use. The one-time cost of
each ad appears in the Production Cost column. The AQH Persons column identifies the
average number of people listening to each network during any 15 minutes. The Cost per Ad
column indicates the cost of running an ad once in each network. The Number of Ads column
identifies the number of times that the ad will run on the network, and the Total Cost column
shows the cost of running the specified number of ads. The Gross Impressions column is the
product of multiplying the AQH Persons value by the Number of Ads value and indicates the
potential reach of the ad. Gross impressions represent the number of times an ad is heard
during a promotion. This shouldnt be confused with how many people have heard it. Shoes4U
would like to maximize the number of gross impressions. Percentage column represent the
percentage of ads placed on each network. The number of ads that can be purchased from
each network is limited by the following requirements by Shoes4U:
Do not exceed the \$225,000 budget.
Achieve at least 15,000,000 gross impressions.
Purchase at least 65 ads from each network.
Purchase no more than 100 ads on each network.

(You have been provided the data in the data1 sheet of the file Assignment 3_Data.xlsx)

1. Copy the data into a new sheet and develop a model (Name it Q1_Model) and run the solver
for the required objective within the constraints. Generate a review report (Name it
Q1_Review Report 1) for the solver result. Based on the review make suitable suggestions
as to what needs to be done for a feasible solution in a text box in the review report 1 sheet.
(5 Marks)

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2. Shoes4U decides to change the purchase limit to at least 50 ads from each network.
Incorporate any changes in a new sheet (Name it Q2_50 Ads per Network). Produce an
answer report for your solution (Name it Q2_Review Report 2) and explain the report.
(2 Marks)

3. The marketing manager just gave you some new information about the radio promotion.
The advertising managers from two of the three radio networks have limited the number of
units (advertising spots) available to no more than 40 ads per client for Radio Network 2 and
no more than 50 ads per client for Radio Network 3 during the time in which Shoes4U wants
to run its promotion. The manager raised the limit on Radio Network 1 ads to no more than
125. In a new sheet change your solver model and find a new solution that limits the number
of ads for second and third networks accordingly. Save the sheet as Q3_Limited Ads and
keep your Solver solution and generate answer report (Name it Q3_Review Report 3).
(2 Marks)

4. Examine Q3_Review Report3. Which constraint(s) are binding? Which ones are policy
constraints by Shoes4U? Explain your findings, and then recommend some changes that
might create a better solution in a text box inserted into the answer report worksheet. Put
your response in a text box in Q3_Review Report and change the name of the sheet to
Q3_Q4_Review Report 3 (from Q3_Review Report3).
(3 Marks)

5. A company produces five different types of toys, which use six different materials in varying
amounts. E.g, Toy A requires 3 units of blue paint, 2 units of white paint, 1 unit of plastic, 3
units of wood, and 1 unit of glue. Theres an inventory of each type of material (see data 2).

How many numbers of each toy produced would maximize the profit. Use the data provided
in the Data 2 sheet in Assignment 3_Data.xlsx file. Name the sheet as Q.5_Data2

## (Clarity and organisation of the model will be evaluated) (4 Marks)

6. Worksheet Data 3 has data on % Risk of strokes. Write the regression equation (test for
linearity, non-linearity and interactions in the data). Determine and comment on the
relationship between the variables. Write your regression equation and comments in a text
box in the final sheet.

Name all the sheets for Q.6 as Q.6_a, Q.6_b and so on. (10 Marks)

7. In the final sheet for Q.6, determine the number error value outside which your predictions
will be an outlier and highlight (either manually or use cond. formatting) the outliers in the
residuals, if any. (2 Marks)