Stat week 6

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politicalcandidatecase.pdf

Political Candidate Case

Jim Jamison, a political candidate is planning his campaign budget for an upcoming

election. He has $90,000 to spend. He expects to get an additional $25,000 in donations

to his campaign over the next month. His political consultants have provided him with

the following estimates of additional votes as a result of the advertising effort:

For every small sign placed by the roadside, he will garner 10 additional votes.

For large small sign placed by the roadside, he will garner 30 additional votes.

For every thousand bumper stickers placed on a car, he will garner 40 additional votes.

For every hundred personal mailings to registered voters, he will garner 40 additional votes.

For every ad heard daily in the last month before the election, he will garner 490 additional votes.

The costs for each of these advertising devices, along with the practical minimum and

maximum number of Ads that should be planned for each, are shown on the table below:

Advertising Device Cost Minimum Maximum

Small Roadside Sign $25 100 500

Large Roadside Sign $60 50 300

Bumper stickers (thousands) $30 40 100

Personal Mailings (hundreds) $82 500 800

Daily Radio Ads $1000 3 12