Question A big computer supplier in Kathmandu used to sell large number of computers in each year. His interest is to increase his sales volume in each year for which the supplier has started to take the help of advertisement and allocated some advertisement expenditure in his annual budget each yea
Question
A big computer supplier in Kathmandu used to sell large number of computers in each year. His interest is to increase his sales volume in each year for which the supplier has started to take the help of advertisement and allocated some advertisement expenditure in his annual budget each year. The supplier wants to quantify the effect of advertise expenditure on sales of computers. The advertisement expenditure (in lakhs rupees) and their corresponding sales from the computers (in crores rupees) is tabulated as follows. (Assuming that the relationship between the advertisement expenditure and sales is linear.)
| Advertisement expenditure | 40 | 50 | 38 | 60 | 65 | 50 | 35 |
|---|---|---|---|---|---|---|---|
| Sales | 38 | 60 | 55 | 70 | 60 | 48 | 30 |
a.) Perform appropriate statistical analysis and quantify the effect of advertisement on sales obtained from the computer selling. Also interpret the results.
b.) Estimate the sales corresponding to advertising expenditure of Rs. 45 lakhs.
[5+5+0]
Advertisement Expenditure (X) Sales (Y) ------------- 40 38 50 60 38 55 60 70 65 60 50 48 35 30 $n = 7$ X Y XY X² Y² ------------------- 40 38 1520 1600 1444 50 60 3000 2500 3600 38 55 2090 1444 3025 60 70 4200 3600 4900 65 60 3900 4225 3600 50 48 2400 2500 2304 35 30 1050 1225 900 ΣX = 338 ΣY = ...