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Posted: May 13th, 2018
OPS MGMT – WXYZ is a television station
WXYZ is a television station that has 36 thirty-second advertising slots during each evening. The station is now selling advertising for the first few days in November. They could sell all the slots now for $5,000 each, but because November 7 will be an election day, the station may be able to sell slots to political candidates at the last minute for a price of $10,000 each. For now, assume that a slot not sold in advance and not sold at the last minute is worthless to WXYZ (15 marks).To help make this decision, the sales force has created the following probability distribution for last-minute sales:a. How many slots should WZMU sell in advance?b. Now suppose that if a slot is not sold in advance and is not sold at the last minute, it may be used for a promotional message worth $3100. Now how many slots should WXYZ sell in advance?Demand (d) Probability Cumulative probabilityP(D <= d)8 0.00 0.009 0.05 0.0510 0.10 0.1511 0.15 0.3012 0.20 0.5013 0.10 0.6014 0.10 0.7015 0.10 0.8016 0.10 0.9017 0.05 0.9518 .050 1.0019 0.00 1.00
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