The Reklama Advertising Agency has a client who wants to buyTV advertisement slots. The client wants to reach the largestpossible target audience within their budget of f3 m. Reklamahave been...

The Reklama Advertising Agency has a client who wants to buy TV advertisement slots. The client wants to reach the largest possible target audience within their budget of f3 m. Reklama have been offered peak and off-peak slots by one network. These slots reach 14 million and 4 million people respectively. A peak slot costs £150,000 and an off-peak slot £50,000. The network only has twelve peak slots available within the timescale the client wants and they insist that at least ten of the slots they sell to Reklama are off-peak. (a) How many of each type of slot should Reklama book to maximize the audience for the client, and what is the max- imum total audience? (b) Independent analysis suggests that the audiences are actu- ally 12 million for the peak and 5 million for the off-peak slots. Should Reklama change the booking in the light of this new information, and if so, to what?