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655-705 Level|   Non-Math Related|   Word Problems|               
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Video solution here:



 
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Can the linear constant also lead to negative coorelation between the Actual VS Predicted sold products?
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Ayushi0002
Can the linear constant also lead to negative coorelation between the Actual VS Predicted sold products?
­No, this wording and context implies a positive correlation, where Actual = (Some Constant) * (Predicted) 
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GMATCoachBen
­
The table shows the sales forecast from January to June of last year, by the sales team of Company X, for the number of units of Product Z each month.

Was the actual number of units of Product Z sold in March less than the number sold in April?

(1) Twelve units of Product Z were sold in March.

(2) From January through June of last year, there was a constant, linear relationship between the forecast and actual number of units of Product Z sold.­­­­

Attachment:
The table shows the sales forecast from January to June.png
­
­Hey chetan2u and GMATCoachBen, I marked the option E. why can't we take negative correlation between actual and forecast in St2. If  one plots forecast on x-axis and then actual units on y-axis and then visualise the linear graph, one cannot say whether the march actual units will decrease or increase compared to actual units in april. Thanks in advance 
 
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We are told projections and actuals had a constant linear relationship.

Even if it is negative, April projections being larger would always be larger.

Say, actual=x*projected
March: 8=x*16, so x is 0.5
Thus in April actual = 0.5*20 =10 >8.
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How about Actual + Forecast = 28 ?

Is this a constant linear relationship ?

KarishmaB can you please help
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Ayushi0002
Can the linear constant also lead to negative coorelation between the Actual VS Predicted sold products?
­I'm having the same question as well. Can anyone else chime in?
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Ayushi0002
Can the linear constant also lead to negative coorelation between the Actual VS Predicted sold products?
­I'm having the same question as well. Can anyone else chime in?

Flatrun3 and Ayushi0002

Linear relationship means a straight line relationship. It depends on slope of line and could be
Positive: Both increase with each other
Negative: one increases and other decreases

In Algebra, it is represented by y=mx+b

Posted from my mobile device
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Exactly chetan2u - there is mentioned that the relationship is linear - +ve or -ve, we aren’t sure so how can we say on the predicted basis that the no of products sold in march were actually less than April. if we aren’t aware of what kind of linear relationship .
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Quote:
From January through June of last year, there was a constant, linear relationship between the forecast and actual number of units of Product Z sold.­
i think this is what linear relationship between the forecast and actual means.
­
Attachments

1.PNG
1.PNG [ 10.76 KiB | Viewed 18371 times ]

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Ayushi0002
Can the linear constant also lead to negative coorelation between the Actual VS Predicted sold products?
­No,

Number of Products sold can never be negative.
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KarishmaB

manasp35
How about Actual + Forecast = 28 ?

Is this a constant linear relationship ?

KarishmaB can you please help

 
I don't understand the term "constant linear relationship". I would have taken it as a linear relation and since a line can have positive or negative slope, I would have marked the answer here as (E). If it is used in certain specific curricula this way, then I don't know about it. 

y = kx is a direct relation. 

­
­exactly this is what I feel and thereforeI marked option E. Can anyone please let me know if I am wrong.
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Hey Karishma,
Can we say that y=kx ; and use direct and inverse variation ( similar to what we use in ratios) to solve for the actual value for April or since the question does not mention direct variation, would it be wiser to stick to the possibility of there exisitng an intercept value and hence do not pursue this unless direct variation ( positive or negative) is mentioned? ­KarishmaB­
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Akko913
Hey Karishma,
Can we say that k=yx ; and use direct and inverse variation ( similar to what we use in ratios) to solve for the actual value for April or since the question does not mention direct variation, would it be wiser to stick to the possibility of there exisitng an intercept value and hence do not pursue this unless direct variation ( positive or negative) is mentioned? ­KarishmaB
I don't know what you mean by k = yx. There is certainly not an inverse variation between actual and predicted values.
But the answer expects us to consider constant, linear relationship as y = kx. 

­As I mentioned above, "constant, linear relationship" does not mean that to me at all and I don't think that a live question of GMAT would use this. 
But do keep in mind that if you do come across this term on the GMAT, they perhaps mean y = kx if nothing else makes sense. 
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S2)
Looking at some of the posts let me clarify some fundamentals:

A linear relation is y=mx+c

y=mx is a proportional relationship (this is also linear)

y=2x is positive sloped increasing linear function
y=-2x is a negative sloped decreasing linear function
y=0 is 0 sloped linear function


A linear relationship can have a positive or a negative slope .

Hence this question has some piece of information missing. Although we can assume forecast should somehow be positively correlated to actuals but this is crossing the scope of the problem.

Hence if slope is positive , ans is yes
If slope is negative , ans is no
If slope is 0, ans is no

Looks like a poor quality question from GMAC

Posted from my mobile device
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chetan2u
We are told projections and actuals had a constant linear relationship.

Even if it is negative, April projections being larger would always be larger.

Say, actual=x*projected
March: 8=x*16, so x is 0.5
Thus in April actual = 0.5*20 =10 >8.
­chetan2u Bunuel If the relation is negative, then won't the equation be actual = - (k)*projected
The slope of the curve has to be negative for negative correlation and not 0.5, isn't?

I marked E . Can you help me in understanding what I am missing
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GMATCoachBen Can you please post the official solution?
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