Question
The following information about advertising expenditures and sales of a company is given below:
| Advertising
| Sales (y) Lakhs ( | |
| Average | 10 | 90 |
| Variance | 9 | 144 |
| Correlation Coefficient between x and y is 0.8. | ||
What should be the advertising budget if the company wants to attain sales target of 120 Lakhs?
Answer :
Word Count : 310
To determine the advertising budget required to achieve a sales target of 120 Lakhs, we can use the concept of linear regression. The relationship between advertising expenditure (\(x\)) and sales (\(y\)) can be modeled as: \[ y = a + b x \] where: - \(a\) is the y-intercept, - \(b\) is the slope of the regression line. Given the data: - Average advertising expenditure (\(\bar{x}\)) = 10 Lakhs, - Average sales (\(\bar{y}\)) = 90 Lakhs, - _________ _______ ________ __________ _________ _____ ____ ___.
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To determine the advertising budget required to achieve a sales target of 120 Lakhs, we can use the concept of linear regression. The relationship between advertising expenditure (\(x\)) and sales (\(y\)) can be modeled as: \[ y = a + b x \] where: - \(a\) is the y-intercept, - \(b\) is the slope of the regression line. Given the data: - Average advertising expenditure (\(\bar{x}\)) = 10 Lakhs, - Average sales (\(\bar{y}\)) = 90 Lakhs, - _________ _______ ________ __________ _________ _____ ____ ___.
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