To modify: The original model to place a lower limit on the total amount of excess exposures and minimize the total adverting cost and run a sensitivity analysis. Linear programming: It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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Chapter 4.2, Problem 5P

Summary Introduction

To modify: The original model to place a lower limit on the total amount of excess exposures and minimize the total adverting cost and run a sensitivity analysis.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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