Advertisements
Advertisements
Question
The following data about the sales and advertisement expenditure of a firms is given below (in ₹ Crores)
| Sales | Adv. Exp. | |
| Mean | 40 | 6 |
| S.D. | 10 | 1.5 |
Coefficient of correlation between sales and advertisement expenditure is 0.9.
Estimate the likely sales for a proposed advertisement expenditure of ₹ 10 crores.
Advertisements
Solution
Let X = Sales,
Y = Advertisement expenditure
Given, `bar x = 40, bar y = 6, sigma_"X" = 10, sigma_"Y" = 1.5`, r = 0.9
`"b"_"XY" = "r" sigma_"X"/sigma_"Y" = 0.9 xx 10/1.5 = 6`
`"b"_"YX" = "r" sigma_"Y"/sigma_"X" = 0.9 xx 1.5/10 = 0.135`
The regression equation of X on Y is
`("X" - bar x) = "b"_"XY" ("Y" - bar y)`
∴ (X - 40) = 6(Y - 6)
∴ X - 40 = 6Y - 36
∴ X = 6Y - 36 + 40
∴ X = 6Y + 4
For Y = 10, we get
X = 6(10) + 4 = 60 + 4 = 64
∴ The likely sale is ₹ crores for a proposed advertisement expenditure of ₹ 10 crores.
APPEARS IN
RELATED QUESTIONS
For bivariate data. `bar x = 53, bar y = 28, "b"_"YX" = - 1.2, "b"_"XY" = - 0.3` Find estimate of Y for X = 50.
You are given the following information about advertising expenditure and sales.
| Advertisement expenditure (₹ in lakh) (X) |
Sales (₹ in lakh) (Y) | |
| Arithmetic Mean | 10 | 90 |
| Standard Mean | 3 | 12 |
Correlation coefficient between X and Y is 0.8
- Obtain the two regression equations.
- What is the likely sales when the advertising budget is ₹ 15 lakh?
- What should be the advertising budget if the company wants to attain sales target of ₹ 120 lakh?
Bring out the inconsistency in the following:
bYX = 2.6 and bXY = `1/2.6`
For a certain bivariate data
| X | Y | |
| Mean | 25 | 20 |
| S.D. | 4 | 3 |
And r = 0.5. Estimate y when x = 10 and estimate x when y = 16
An inquiry of 50 families to study the relationship between expenditure on accommodation (₹ x) and expenditure on food and entertainment (₹ y) gave the following results:
∑ x = 8500, ∑ y = 9600, σX = 60, σY = 20, r = 0.6
Estimate the expenditure on food and entertainment when expenditure on accommodation is Rs 200.
For a bivariate data, `bar x = 53`, `bar y = 28`, byx = −1.5 and bxy = −0.2. Estimate y when x = 50.
If the two regression lines for a bivariate data are 2x = y + 15 (x on y) and 4y = 3x + 25 (y on x), find
- `bar x`,
- `bar y`,
- bYX
- bXY
- r [Given `sqrt0.375` = 0.61]
Two lines of regression are 10x + 3y − 62 = 0 and 6x + 5y − 50 = 0. Identify the regression of x on y. Hence find `bar x, bar y` and r.
Regression equations of two series are 2x − y − 15 = 0 and 3x − 4y + 25 = 0. Find `bar x, bar y` and regression coefficients. Also find coefficients of correlation. [Given `sqrt0.375` = 0.61]
Find the line of regression of X on Y for the following data:
n = 8, `sum(x_i - bar x)^2 = 36, sum(y_i - bar y)^2 = 44, sum(x_i - bar x)(y_i - bar y) = 24`
The following results were obtained from records of age (X) and systolic blood pressure (Y) of a group of 10 men.
| X | Y | |
| Mean | 50 | 140 |
| Variance | 150 | 165 |
and `sum (x_i - bar x)(y_i - bar y) = 1120`. Find the prediction of blood pressure of a man of age 40 years.
Choose the correct alternative:
|byx + bxy| ≥ ______
Choose the correct alternative:
Find the value of the covariance between X and Y, if the regression coefficient of Y on X is 3.75 and σx = 2, σy = 8
Choose the correct alternative:
bxy and byx are ______
Choose the correct alternative:
If r = 0.5, σx = 3, σy2 = 16, then bxy = ______
Choose the correct alternative:
Both the regression coefficients cannot exceed 1
State whether the following statement is True or False:
If byx = 1.5 and bxy = `1/3` then r = `1/2`, the given data is consistent
State whether the following statement is True or False:
Cov(x, x) = Variance of x
If the sign of the correlation coefficient is negative, then the sign of the slope of the respective regression line is ______
The value of product moment correlation coefficient between x and x is ______
Given the following information about the production and demand of a commodity.
Obtain the two regression lines:
| ADVERTISEMENT (x) (₹ in lakhs) |
DEMAND (y) (₹ in lakhs) |
|
| Mean | 10 | 90 |
| Variance | 9 | 144 |
Coefficient of correlation between x and y is 0.8.
What should be the advertising budget if the company wants to attain the sales target of ₹ 150 lakhs?
The equations of the two lines of regression are 2x + 3y − 6 = 0 and 5x + 7y − 12 = 0. Find the value of the correlation coefficient `("Given" sqrt(0.933) = 0.9667)`
Given the following information about the production and demand of a commodity.
Obtain the two regression lines:
| Production (X) |
Demand (Y) |
|
| Mean | 85 | 90 |
| Variance | 25 | 36 |
Coefficient of correlation between X and Y is 0.6. Also estimate the demand when the production is 100 units.
If n = 5, Σx = Σy = 20, Σx2 = Σy2 = 90 , Σxy = 76 Find Covariance (x,y)
For a certain bivariate data of a group of 10 students, the following information gives the internal marks obtained in English (X) and Hindi (Y):
| X | Y | |
| Mean | 13 | 17 |
| Standard Deviation | 3 | 2 |
If r = 0.6, Estimate x when y = 16 and y when x = 10
Mean of x = 53
Mean of y = 28
Regression coefficient of y on x = – 1.2
Regression coefficient of x on y = – 0.3
a. r = `square`
b. When x = 50,
`y - square = square (50 - square)`
∴ y = `square`
c. When y = 25,
`x - square = square (25 - square)`
∴ x = `square`
Mean of x = 25
Mean of y = 20
`sigma_x` = 4
`sigma_y` = 3
r = 0.5
byx = `square`
bxy = `square`
when x = 10,
`y - square = square (10 - square)`
∴ y = `square`
For a bivariate data:
`sum(x - overlinex)^2` = 1200, `sum(y - overliney)^2` = 300, `sum(x - overlinex)(y - overliney)` = – 250
Find:
- byx
- bxy
- Correlation coefficient between x and y.
