## Multi-Source Reasoning Question - ADVERTISING CHANNELS

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### Multi-Source Reasoning Question - ADVERTISING CHANNELS

by e-GMAT » Wed Dec 12, 2012 4:05 am
Hi folks,

Try out this new Multi-Source Reasoning question. Please feel free to put your analysis and comments as well. Looking forward to your responses.

TAB 1 - PROPOSAL

Based on the information below and the fact that a typical customer for our product would have an annual salary in the range $40K -$60K, we propose that our ad budget be equally divided between "News Roundup" and "The Beach Show". The other two shows have been rejected on the following grounds:
- For the show "A Tea with Shinie", there is only a miniscule number of viewers (around 5% of the viewers), who earn than $40K annually. Besides, half of these earn more than$60K, thus are not our target customers.
- For the show "Hand in Hand", the average salary of viewers is below the minimum salary of our target customer.

TAB 2 - HEAD OF MARKETING

I have gone through the proposal prepared by the ad department. I have a few observations:
- Our target should be to reach maximum number of target customers per dollar spent on advertising. If, in the process, we also get to reach other people, it is better. Thus, I don't find any reason for selecting "The Beach Show" over "A Tea with Shinie".
- Similarly, I don't agree with the reason for rejection of "Hand in Hand". We know that of the 2.4M viewers, who watch the show, 1.2M don't earn more than $20K and not even a single viewer earns more than$50K. Therefore, I think a significant number of people are in our customer target range.

Based on these, I would like the ad department to reconsider their proposal.

QUESTIONS

Based on the information presented, answer the following questions:

1. What is the maximum number of viewers (approx..) that must watch the show "The Beach Show", who fall in the customer target category, such that the statement of the Head of Marketing holds true?
A. 31K
B. 24K
C.46K
D. 48K
E. The statement of the Head of Marketing always holds true

2. Assuming that the viewers who earn between $20K and$50K are uniformly distributed across this range, what is the number of viewers of "Hand in Hand" show who fall in the target customer category of the company?
A. 400K
B. 1,200K
C. 300K
D. Zero
E. Can't say on the basis of information given

3. As per argument of the head of marketing, the company has a criterion for deciding on the TV programs to advertise to. Assuming that the company had to decide on one of the shows, based on this criterion, what is the minimum percentage of viewers of the show, "News Roundup", which should fall within the target customer criteria, so that the company chooses it over "A Tea with Shinie"?
A. 0.45%
B. 0.5%
C. 1.0%
D. 1.3%
E. 2%

- Chiranjeev Singh

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