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Management · Q75

Business Statistics

Graduate and Post Graduate · Management · question 75

Q75

You are given the following information about advertising expenditure and sales. Advertisement (X) Sales (Y) (Rs. in lakh) Arithmetic Mean 10 90 Standard Deviation 3 12 Correlation coefficient between advertising expenditure and sales 0.80. What is the likely sales for advertising budget of Rs. 15 lakh?

You are given the following information about advertising expenditure and sales.
Advertisement (X) Sales (Y) (Rs. in lakh)
Arithmetic Mean 10 90
Standard Deviation 3 12
Correlation coefficient between advertising expenditure and sales 0.80. What is the likely sales for advertising budget of Rs. 15 lakh?
A.
Rs. 120 lakh
B.
Rs. 106 lakh
Answer
C.
Rs. 58 lakh
D.
Rs. 48 lakh

Answer: Option B

Solution

Answer: Option B
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