computer startup named Pear is considering entering the US m

computer start-up named Pear is considering entering the U.S. market with what they believe to be a smaller and faster computer than some of the existing products on the market. They want to get a feel for whether or not customers would be willing to switch from some of the existing bigger brands to consider their product. They want to collect a reasonable sample from across the United States representative of all age brackets. They have split the United States into 2 regions: East and West. They want at least 65% of their sample to cover the East and no fewer than 25% of the West. They also have divided the age groups into 3 categories: 18-35, 36-69, and 70 and up. They want at least 50% of their sample to be between 18 and 35 and at least 40% to be between 36 and 69. The costs per person surveyed is given in the table below:

Region

18-35

36-69

70 and up

East

$2.50

$2.00

$1.50

West

$3.50

$3.00

$2.00

Assume that at least 1,000 people are to be surveyed. The problem is for Pear Company to decide how many people to survey from each age bracket within each region in order to minimize costs while meeting requirements. Find the optimal solution and minimum cost.

What is the minimum cost? [a]

Use Excel Quiz 6, LP1, do not use $ sign

Region	18-35	36-69	70 and up
East	$2.50	$2.00	$1.50
West	$3.50	$3.00	$2.00

Solution

region 18-35 36-69 70andup total person to be surveyed east 375 300 75 750 west 125 100 25 250 TOTAL PERSON TO BE SURVEYED 1000 ABOVE IS OPTOMAL SOLUTUIN MINIMUM COST TOTAL COST EAST 375X2.5 300X2 75X1.5 937.5 600 112.5 1650 WEST 125X3.5 100X3 25X2 437.5 300 50 787.5 TOTOAL MINIMUM COST 2437.5