A company wishes to do direct marketing to potential clients for a new high-end product. It has been offered three mailing lists by a research firm that has done intensive studies of the buying habits of its prospective clients. The charges for the lists have been given as Ksh 50/- per distinct name. Upon scrutiny of the list the following came to light: • The first list (List 1) has 1500 names, the second list (List 2) has 3300 names and the third list (List 3) has 2800 names. • List 1 and List 2 have 382 names in common. • List 1 and List 3 have 417 names in common. • List 2 and List 3 have 741 names in common. If all the 3 lists have 219 names in common, determine the maximum amount that the company should pay for the lists. (Use the concepts of Set Theory)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
A company wishes to do direct marketing to potential clients for a new high-end product. It has been offered three mailing lists by a research firm that has done intensive studies of the buying habits of its prospective clients. The charges for the lists have been given as Ksh 50/- per distinct name. Upon scrutiny of the list the following came to light:
• The first list (List 1) has 1500 names, the second list (List 2) has 3300 names and the third list (List 3) has 2800 names.
• List 1 and List 2 have 382 names in common.
• List 1 and List 3 have 417 names in common.
• List 2 and List 3 have 741 names in common.
If all the 3 lists have 219 names in common, determine the maximum amount that the company should pay for the lists.
(Use the concepts of Set Theory)
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