Advertising Budget Allocation under Uncertainty
建立模型，在广告销售响应不确定时，将预算分配到不同地理市场。基于期望利润和方差推导有效前沿，帮助风险规避的管理者根据偏好选择最优分配。
This article presents a model for the allocation of an advertising budget to geographic market segments, or territories, when the sales response to advertising in each segment is characterized by a probability distribution. It is shown that allocation decisions that are based on the expected sales response may be associated with a relatively large degree of risk and, therefore, non-optimal to a risk-averse manager. The model derives an “efficient frontier” in terms of the expected profit and its variance resulting from alternative budget allocations. The manager then chooses the optimal allocation based on his/her preference function.