The Money-Weight Equation … I Have Finally Cracked It

by Vinaya HS on April 9, 2007

in Business & Management

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The GEO Blog has finally cracked the money-weight equation! (Previous attempts here, here, and here.) I hope you are as excited as I am at this discovery. And all it took was a stroll past VLCC and some basic mathematical modeling using Microsoft Excel. Are you ready to read about it? Lo and behold…

Money to be spent = 648 * Kilograms to be lost + 510

If money to be spent = y and kilograms to be lost = x, the equation becomes a more readable

y = 648x + 510

Graphical proof for the above equation:

Source data:

VLCC advertisement in front of the VLCC centre near South End Circle that says “Lose 5kg for Rs. 3750″ and “Lose 10kg for Rs. 6990.” Since we have only two data points, the best we can do is a linear model. In future, as more data points become available, we could try and fit a polynomial curve.

Observations:

  1. The consulting charges should be Rs. 510. This is easily derived by setting x = 0 (you don’t lose weight during a consulting session, do you?).
  2. If you happen to be 70 kilos, you need to spend Rs. 45,870 before you completely disappear.

Disclaimer:

The money-weight equation is subject to uncertainties in the business climate. This equation is valid as of today.

I can’t stop laughing.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 3 comments… read them below or add one }

Venky April 11, 2007 at 8:51 AM

:)) How much did you spend?

Venky April 11, 2007 at 8:52 AM

Do you have a weight gain equation as well.

Vinaya HS April 11, 2007 at 9:56 PM

Venky, I haven’t spent a rupee. I have only given a theoretical proof. There’s no weight gain equation yet man.

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