You have been given the opportunity to buy a machine from your grandfather to make butter knives. Since the machine would stay in the family, your grandfather only wants SEK 300,000 for the machine. Depreciation, interest, service and electricity will cost you SEK 30,000 per year. The machine can make 200 butter knives every day; 360 days per year. The coverage ratio is 60% and sales price / pc = SEK 2. How many butter knives do you need to manufacture and sell to reach the critical point?
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.
You have been given the opportunity to buy a machine from your grandfather to make butter knives. Since the machine would stay in the family, your grandfather only wants SEK 300,000 for the machine. Depreciation, interest, service and electricity will cost you SEK 30,000 per year. The machine can make 200 butter knives every day; 360 days per year. The coverage ratio is 60% and sales price / pc = SEK 2.
How many butter knives do you need to manufacture and sell to reach the critical point?
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