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. The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above?
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. The information given below relates to the advertisement expenses an...
Solution:
Given data:
Mean of advertisement expenses = Rs. 20 lakh
Standard deviation of advertisement expenses = Rs. 3 lakh
Mean of sales revenue = Rs. 100 lakh
Standard deviation of sales revenue = Rs. 12 lakh
Correlation coefficient between advertisement expenses and sales revenue = r = 0.8
To find: Advertisement expenditure required to attain sales target of Rs. 120 lakh
Let X be the advertisement expenditure and Y be the sales revenue.
We are given the following information:
- Mean of X = 20
- SD of X = 3
- Mean of Y = 100
- SD of Y = 12
- Correlation coefficient between X and Y = 0.8
Formula to find Y for a given X is:
Y = bX + a
where b is the slope of the line and a is the intercept.
The formula to find the slope of the line is:
b = r(SD of Y/SD of X)
= 0.8(12/3)
= 3.2
The formula to find the intercept of the line is:
a = Mean of Y - b(Mean of X)
= 100 - 3.2(20)
= 38
Therefore, the equation of the line is:
Y = 3.2X + 38
To find the value of X for Y = 120, we substitute Y = 120 in the above equation and solve for X.
120 = 3.2X + 38
3.2X = 82
X = 25.625
Therefore, the advertisement expenditure required to attain sales target of Rs. 120 lakh is Rs. 25.625 lakh.
Answer: None of the above.
Given data:
Mean of advertisement expenses = Rs. 20 lakh
Standard deviation of advertisement expenses = Rs. 3 lakh
Mean of sales revenue = Rs. 100 lakh
Standard deviation of sales revenue = Rs. 12 lakh
Correlation coefficient between advertisement expenses and sales revenue = r = 0.8
To find: Advertisement expenditure required to attain sales target of Rs. 120 lakh
Let X be the advertisement expenditure and Y be the sales revenue.
We are given the following information:
- Mean of X = 20
- SD of X = 3
- Mean of Y = 100
- SD of Y = 12
- Correlation coefficient between X and Y = 0.8
Formula to find Y for a given X is:
Y = bX + a
where b is the slope of the line and a is the intercept.
The formula to find the slope of the line is:
b = r(SD of Y/SD of X)
= 0.8(12/3)
= 3.2
The formula to find the intercept of the line is:
a = Mean of Y - b(Mean of X)
= 100 - 3.2(20)
= 38
Therefore, the equation of the line is:
Y = 3.2X + 38
To find the value of X for Y = 120, we substitute Y = 120 in the above equation and solve for X.
120 = 3.2X + 38
3.2X = 82
X = 25.625
Therefore, the advertisement expenditure required to attain sales target of Rs. 120 lakh is Rs. 25.625 lakh.
Answer: None of the above.
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. The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above?
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. The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about . The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above?.
. The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about . The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . The information given below relates to the advertisement expenses and sales revenue of a company. Adv Exp Rs. Lakh Sales Rs Lakh Mean 20 100 S.D. 3 12 r = 0.8 What should be the advertisement expenditure, if the company wants to attain a sales target of Rs120 lakh? a) Rs20,00,000 c) Rs. 18,00,000 b) Rs. 24,00,000 d) None of the above?.
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