Interpret. From the scatter plot it is evident that the slope of the ‘best fit’ line is positive, which indicates that Credit Balance varies directly with Size. As Size increases, Credit Balance increases and vice versa. MINITAB OUTPUT: Regression Analysis: Credit Balance ($) versus Size The regression equation is Credit Balance ($) = 2582 + 404 Size Predictor Coef SE Coef T P Constant 2581.9 195.3 13.22 0.000 Size 404.13 51.00 7.92 0.000 S = 620.793 R-Sq = 56.7% R-Sq (adj) = 55.8% Analysis of Variance Source DF SS MS F P Regression 1 24200717 24200717 62.80 0.000 Residual Error 48 18498431 385384 Total 49 42699149 Predicted Values for New Observations New Obs Fit SE Fit 95% CI 95% PI 1 4602.6 119.2 (4363.0, 4842.2) (3331.6, 5873.6) Values of Predictors for New Observations New Obs Size 1 5.00 2. Determine the equation of the ‘best fit’ line, which describes the relationship between CREDIT BALANCE and SIZE.
1. The graph approximates the points: E(r) σ Minimum Variance Portfolio 10.89% 19.94% Tangency Portfolio 12.88% 23.34% 10. The reward-to-variability ratio of the optimal CAL (using the tangency portfolio) is: 11. a. The equation for the CAL using the tangency portfolio is: Setting E(rC) equal to 12% yields a standard deviation of: 20.56% b. The mean of the complete portfolio as a function of the proportion invested in the risky portfolio (y) is: E(rC) = (l - y)rf + yE(rP) = rf + y[E(rP) - rf] = 5.5 + y(12.88 - 5.5) Setting E(rC) = 12% ==> y = 0.8808 (88.08% in the risky portfolio) 1 - y = 0.1192 (11.92% in T-bills) From the composition of the optimal risky portfolio: Proportion of stocks in complete portfolio = 0.8808 × 0.6466 = 0.5695 Proportion of bonds in complete portfolio = 0.8808 × 0.3534 = 0.3113 12.
Define Skewness Skewness is a measure of the asymmetry of the probability distribution of a real-valued random variable about its mean. The Skewness value can be positive or negative, or even undefined. 18. What is Standard deviation (STDEV) The standard deviation (SD) (represented by the Greek letter sigma, σ) shows how much variation from the average exists. Deviation (statistics) is the difference between the value of an observation and the mean of the population in mathematics and statistics.
| | | | | | | | TRUE | | | | | | | | | All the unique risk of stocks in a diversified portfolio have been diversified away | | | | | | | | | | | | | | | | | | | | | c. If a stock's expected rate of return plots below the security market line, it is underprices. | FALSE | | | | | | | | | It is overpriced. The expected return is less which means that return is over a higher price | | | | | | | | | | | d. A diversified portfolio with a beta of 2 is twice as volatile as the market portfolio. | | TRUE | | | | | | |
There are two basic reasons. First, the choice of units when absolute changes are used will have an arbitrary effect on the interpretation of responsiveness. For example, if price is calculated in dollars, then a one-unit drop in price (from $5 to $4) might be associated with a 10-unit increase in quantity. If, however, the price was calculated in cents, then a 100-unit drop in price would be associated with a 10-unit increase in quantity. In the first case, it would appear the demand is inelastic and in the second case it would appear to be elastic.
The cost of capital for average-risk projects would be the firm’s cost of capital, 10%. A somewhat higher cost would be used for more risky projects, and a lower cost would be used for less risky ones. For example, we might use 12% for more risky projects and 9% for less risky projects. These choices are arbitrary. 13- Sapp Trucking’s balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%.
However, at some point in producing additional units, the total revenue will exceed the total cost. At that point it becomes a loss. The point in which profit maximization has been met is highlighted in green in the chart below. This is the point in which the gap is the largest between the total revenue and the total cost. Quantity | TR | TC | TR-TC | 0 | $0.00 | $10.00 | -10 | 1 | $150.00 | $30.00 | 120 | 2 | $290.00 | $50.00 | 240 | 3 | $420.00 | $80.00 | 340 | 4 | $540.00 | $120.00 | 420 | 5 | $650.00 | $170.00 | 480 | 6 | $750.00 | $230.00 | 520 | 7 | $840.00 | $300.00 | 540 | 8 | $920.00 | $380.00 | 540 | 9 | $990.00 | $470.00 | 520 | 10 | $1050.00 | $570.00 | 480 | 11 | $1100.00 | $680.00 | 420 | 12 | $1140.00 | $800.00 | 340 | 13 | $1170.00 | $930.00 | 240 | 14 | $1190.00 | $1070.00 | 120 | 15 | $1200.00 | $1220.00 | -20 | 2.
When / if MR is higher than MC then MP would result in a profit for Company A. However, if MC is higher than MR Company A, would experience a loss. Utilizing method the Total Revenue – Total cost method; TR-TC method which depends on P (profit) = Revenue - Cost. When utilizing this method the first step is to determine the results of this equation P=TR-TC. Based on the given scenario for Company A and with utilizing the given data table.
Surveys and analog techniques are examples of ____ forecasting. a. cause and effect b. time series c. exponential smoothing d. judgmental (d; p. 113) 4. An underlying assumption of ____ forecasting is that future demand is dependent on past demand. a. trial and error b. time series c. judgmental d. cause and effect (b; p. 113) 5. What forecasting technique assumes that one or more factors are related to demand and that this relationship can be used to estimate future demand?
C. large amounts of capital goods are produced relative to consumer goods. D. large amounts of consumer goods are produced relative to capital goods. 10. Refer to the above tables. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods will be: A.