The data about the sales and advertisement expenditure of a firm is given below. Sales: mean 40, standard deviation 10 (Rs. crore); Advertisement expenditure: mean 6, standard deviation 1.5 (Rs. crore); coefficient of correlation r = 0.9. Estimate the likely sales for a proposed advertisement of Rs. 10 crore.
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Linear regression and OLS has come up 74 times in 7 exams since 2008.
This question is on The two regression lines and the correlation coefficient, part of Linear regression and OLS in Econometrics.
How the regression of y on x and of x on y relate to each other and to correlation.
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Question from the UGC-NET 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.