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The data about the sales and advertisement expenditure of a firm is given below

The correlation coefficient between sales and advertisement expenditure is 0.9. The likely sales for a proposed advertisement expenditure of Rs. 10 crore
  • a)
    Rs. 64 crores
  • b)
    ​Rs. 67 crores
  • c)
    ​Rs. 70 crores
  • d)
    ​Rs. 58 crores
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The data about the sales and advertisement expenditure of a firm is gi...
Given
X̅ = mean of sales = 40
Y̅ = mean of advertisement cost = 6
Formula
Regression equation of X and Y = X - X̅ = r(x/y)(Y - Y̅)
Calculation
⇒ X - 40 = 0.09(10/1.5)(Y - 6)
⇒ X - 40 = (9/1.5)(Y - 6)
⇒ X - 40 = 6(Y - 6)
⇒ X - 40 = 6Y - 36
⇒ X = 6Y + 4
⇒ X = 6(10) + 4
∴ The likely sales for a proposed advertisement expenditure of Rs. 10 crore is 64 crore.
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The data about the sales and advertisement expenditure of a firm is given belowThe correlation coefficient between sales and advertisement expenditure is 0.9. The likely sales for a proposed advertisement expenditure of Rs. 10 crorea)Rs. 64 croresb)Rs. 67 croresc)Rs. 70 croresd)Rs. 58 croresCorrect answer is option 'A'. Can you explain this answer?
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The data about the sales and advertisement expenditure of a firm is given belowThe correlation coefficient between sales and advertisement expenditure is 0.9. The likely sales for a proposed advertisement expenditure of Rs. 10 crorea)Rs. 64 croresb)Rs. 67 croresc)Rs. 70 croresd)Rs. 58 croresCorrect answer is option 'A'. Can you explain this answer? for Civil Engineering (CE) 2024 is part of Civil Engineering (CE) preparation. The Question and answers have been prepared according to the Civil Engineering (CE) exam syllabus. Information about The data about the sales and advertisement expenditure of a firm is given belowThe correlation coefficient between sales and advertisement expenditure is 0.9. The likely sales for a proposed advertisement expenditure of Rs. 10 crorea)Rs. 64 croresb)Rs. 67 croresc)Rs. 70 croresd)Rs. 58 croresCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Civil Engineering (CE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The data about the sales and advertisement expenditure of a firm is given belowThe correlation coefficient between sales and advertisement expenditure is 0.9. The likely sales for a proposed advertisement expenditure of Rs. 10 crorea)Rs. 64 croresb)Rs. 67 croresc)Rs. 70 croresd)Rs. 58 croresCorrect answer is option 'A'. Can you explain this answer?.
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