Business & Management

The Money-Weight Equation … I Have Finally Cracked It

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.

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