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Number of Months to Run Ad for Maximum Exposure: Yahoo, AOL

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Nielson Net Ratings for the month of December indicated that in the United States AOL had a unique audience about 76.4 million people and Yahoo had a unique audience of about 66.2 million people. An advertising company wants to purchase website ads to promote a new product. Suppose that the monthly cost of an ad on the AOL website is 1,200 and the monthly cost of an ad on the Yahoo website is 1,100. Determine how many months an ad should run on each website to maximize the number of people who would be exposed to it. Assume that for future months, the monthly website audience remains the same as given for December. Also, assume that the advertising budget is 35,000 and that it has been decided to advertise on Yahoo for at least 10 months.

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The solution determines the number of months to run ad's for maximum exposure.

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