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As you know, our revenues have declined for each of the past three qua

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Sajjad1994
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As you know, our revenues have declined for each of the past three qua [#permalink] New post   Updated on: 24 Oct 2023, 01:43
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Email from Marketing Director to Marketing Researcher on October 4, 2011.

As you know, our revenues have declined for each of the past three quarters. To address this issue, I suggest that we initiate a massive advertising buy. On three separate occasions, in 1978, 1987, and 1993, we responded to revenue decreases by increasing our advertising expenditures by 30%. On all three occasions, our revenues began to increase again within one quarter. Therefore, if we increase the number of advertisements targeted at our top consumers by 30%, we will once again increase our revenues.

Since our top consumers are females aged 15–25, determine the top two television programs watched by that group. Also, research the prices for a 30- second commercial for each television program.
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1. Consider each of the following statements. Select Yes if the information contained in the two emails and the memorandum support the inference as stated. Otherwise, select No.
Yes No
No age and gender group watches Blonde Fury more frequently than do females aged 15–25.
Thirty second advertisements are more expensive for programs with larger audiences.
The ratio of female viewers aged 15 to 25 to dollars spent on advertising for Hart Attack is greater than that for Blonde Fury.
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No age and gender group watches Blonde Fury more frequently than do females aged 15–25.: No Thirty second advertisements are more expensive for programs with larger audiences.: No The ratio of female viewers aged 15 to 25 to dollars spent on advertising for Hart Attack is greater than that for Blonde Fury.: No

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2. If there are 20,000,000 females aged 15–25, then how many females aged 15–25 (in millions) watch neither Blonde Fury nor Hart Attack?
1.4
4.0
5.6
9.6
11.2
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3. Consider each of the following statements. Based on the information contained in the two emails and the memoranda, select Yes if the statement is an assumption made by the Marketing Director. Otherwise, select No.
Yes No
It is possible for a strategy that succeeded in the past to succeed again.
The previous increases in revenues were attributable at least in part to the effect of increased advertising.
Increasing the number of advertisements has a similar effect on revenues, to increasing the amount of money spent on advertising expenditures.
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It is possible for a strategy that succeeded in the past to succeed again.: Yes The previous increases in revenues were attributable at least in part to the effect of increased advertising.: Yes Increasing the number of advertisements has a similar effect on revenues, to increasing the amount of money spent on advertising expenditures.: Yes

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Originally posted by Sajjad1994 on 29 Jan 2020, 11:17.
Last edited by BottomJee on 24 Oct 2023, 01:43, edited 2 times in total.
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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   29 Jan 2020, 11:49
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1)a)No,since there is no information provided for the other groups
b)No,we cannot make that judgement only by looking at a small group
c)No,since we just know the percentages and the not the exact numbers

2)Number of viewers of Blonde Fury = .45x(where x is total number of viewers between the age 15 & 25=20,000,000)
Number of viewers of Hart Attack = .35x
Number of viewers common for both shows = .35x*.8= .28x

So total number of viewers for either show = .45x+.35x-.28x =.52x
So neither =.48x = 9.6 millions

3)Yes to all since all of them can be inferred from the Email 1

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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   10 Nov 2020, 08:13
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The answers for Question 1 are:
1) NO (The data present doesn't talk about any other gender or age group)
1) NO (The data doesn't talk about how expensive the ads are based on their run time.)
1) NO (We know the percentage of women and not their exact number, this data is also un inferable.)

The answer for Question 2 are:
Option B (20,000,000- \(\frac{45*20,000,000}{100}\) - \(\frac{35*20,000,000}{100}\)= 4,000,000)

The answer for Question 3 are:
1) YES (the first mail shows that this strategy has succeeded 3 times before.)
2) YES (the First mail shows that this strategy did lead to an increase in revenue all the 3 times it had been used before.)
3) YES (Can be inferred from the first mail.)
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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   10 Nov 2020, 08:30
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kntombat wrote:
The answers for Question 1 are:
1) NO (The data present doesn't talk about any other gender or age group)
1) NO (The data doesn't talk about how expensive the ads are based on their run time.)
1) NO (We know the percentage of women and not their exact number, this data is also un inferable.)

The answer for Question 2 are:
Option B (20,000,000- \(\frac{45*20,000,000}{100}\) - \(\frac{35*20,000,000}{100}\)= 4,000,000)

The answer for Question 3 are:
1) YES (the first mail shows that this strategy has succeeded 3 times before.)
2) YES (the First mail shows that this strategy did lead to an increase in revenue all the 3 times it had been used before.)
3) YES (Can be inferred from the first mail.)


OA of second question is D
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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   10 Nov 2020, 10:52
Sajjad1994, could you provide the OE for the second question, I would love to know where I have gone wrong.
Thanks.
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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   11 Nov 2020, 00:47
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kntombat wrote:
Sajjad1994, could you provide the OE for the second question, I would love to know where I have gone wrong.
Thanks.


Official Explanation

2. If there are 20,000,000 females aged 15–25, then how many females aged 15–25 (in millions) watch neither Blonde Fury nor Hart Attack?

Email #1 describes the company’s plan to increase revenue by ramping up advertising to females aged 15−25. Email #2 identifies the two most popular programs among females aged 15−25. Memo #1 presents advertising and viewership data for the two programs.

According to Memo #1, 45% of females aged 15−25 watch Blonde Fury and 35% of females aged 15−25 watch Hart Attack. If there are 20,000,000 females aged 15−25, then 0.45 × 20,000,000 = 9,000,000 watch Blonde Fury, and 0.35 × 20,000,000 = 7,000,000 watch Hart Attack.

According to Email #2, 80% of female viewers aged 15−25 who watch Hart Attack also watch Blonde Fury. If 7,000,000 females aged 15−25 watch Hart Attack, then 0.80 × 7,000,000 = 5,600,000 who watch Hart Attack also watch Blonde Fury.

Use the group formula to answer the question, group 1 + group 2 + neither –both = total. Substitute the calculated values into the formula, so that 7,000,000 + 9,000,000 + neither – 5,600,000 = 20,000,000. Simplify the equation, so that neither = 9,600,000.

The correct answer is (D).
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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   24 Jan 2024, 10:12
Why "The ratio of female viewers aged 15 to 25 to dollars spent on advertising for Hart Attack is greater than that for Blonde Fury." official answer is "No"? (first question, item c)

I did the following:
ratio of female viewers aged 15 to 25 to dollars = r
Blonde Furry:
r1 = 45%/70 thousands of dollars = 0.64
Hart Attack:
r2 = 35%/50 thousands of dolars = 0.70
So r2>r1 => statement is true => "Yes"

What is wrong? Why I can't use percentages? I mean... if the total of female viewers aged 15 to 25 is T, the female viewers aged 15 to 25 who watches Hart Attack is 0.35T, and the conclusion is the same
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Re: As you know, our revenues have declined for each of the past three qua [#permalink] New post   24 Jan 2024, 10:52
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mmdfl wrote:
Why "The ratio of female viewers aged 15 to 25 to dollars spent on advertising for Hart Attack is greater than that for Blonde Fury." official answer is "No"? (first question, item c)

I did the following:
ratio of female viewers aged 15 to 25 to dollars = r
Blonde Furry:
r1 = 45%/70 thousands of dollars = 0.64
Hart Attack:
r2 = 35%/50 thousands of dolars = 0.70
So r2>r1 => statement is true => "Yes"

What is wrong? Why I can't use percentages? I mean... if the total of female viewers aged 15 to 25 is T, the female viewers aged 15 to 25 who watches Hart Attack is 0.35T, and the conclusion is the same


Calculations are wrong.
It is 55k, so \(\frac{35}{55}\) or 0.6363
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Re: As you know, our revenues have declined for each of the past three qua [#permalink]
24 Jan 2024, 10:52
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