Klein Research has been hired to survey cable television customers to determine their attitudes toward a restructuring of the basic cable service and rate schedule. The
Cable Company wants to classify participants according to whether or not there are
children under the age of 16 in the household and as to whether or not the household
subscribes to any premium channels.
The basic cost of conducting the interviey is $5.00. Those households with children
under 16 are asked a second series of questions, which adds an additional cost of
$4.00 to the interviews. Households with premium channels are questioned about
their viewing habits, and this adds an additional $3.00 to the cost of their interviews.
Cost is to be minimized. The Cable Company wants responses from at least 50
customers. Premium subscribers should constitute at least half of the customers
surveyed. At least 60% of households survey should have children under 16. No
more than have half of households with children should be premium subscribers.
What is the minimum cost?
600.00
754
445.00
325