You are working with the marketing team for a FMCG firm that produces shaving cream. The...

80.2K

Verified Solution

Question

Statistics

You are working with the marketing team for a FMCG firm thatproduces shaving cream. The team believes that sales of some of theproducts are closely related to sales of other products. They wantyou to explore this in a little more depth for two products, SKU123 and SKU 456. Unfortunately, all of the base sales data forthese products has been destroyed. All that you have is the weeklysummary data:
Data
Mean
Standard Deviation
SKU123
721
176
SKU456
1059
266
Now the marketing team wants to understand the potential weeklysales for these two products. Let the sales price for the two SKUsbe 12.50, 7.75, respectively.
1) What is the expected weekly revenue?
2) What is the standard deviation of the weekly revenue?
3) Assuming the marketing teamâ€™s correlation of 0.79 is correct.What is the probability that weekly sales will be between 10,000and 20,000 dollars?

Answer & Explanation Solved by verified expert

3.8 Ratings (459 Votes)

We are given the following detailsDATASKU123SKU456Mean7211059StandardDeviation176266Sales Price12507751 Suppose X denotes the expected revenue from productSKU123 and Y See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member