Suppose we are interested in comparing means from two independent samples. The mean of the first sample is 9 and the mean of the second sample is 17. Let’s assume that the two group means have the same standard errors, equal to 2.5. The 95 percent confidence interval for the first group mean can be calculated as: 9 ± 1.96 × 2.5 where 1.96 is the critical t-value. The confidence interval for the first group mean is thus (4.1, 13.9).
* Risk premium: using the geometric mean from 1926 to 1999 might be problematic, since the risk premium of recent decades is obviously lower than earlier (stated in the lecture). So we think a range of 3% to 5% is more reasonable. * Cost of Debt: Joanna’s calculation is based on the items on the income statement. However, when calculating cost of debt, we should consider the opportunity cost rather than the accounting cost. We should perceive the opportunity cost as the return investors will expect to earn somewhere else when accepting similar risk.
We ran simulations of 5,000 possible outcomes using @Risk with variable values of near-term sales growth, near-term EBIT margin, and discount rate. The test results indicate that the probability of the intrinsic value being less than market value is less than .25. Given the result of the DCF analysis, we recommend our client to “Just BUY It”. DCF Valuation Variables INPUT BOX | | | | | | | | | Discount Rate (WACC) | 7.4% | | | | | | | Near-term sales growth 2014 | 8.5% | | | | | | | Near-term sales growth 2015 | 8.5% | | | | | | | Terminal Sales & Cash Flow growth | 3.5% | | | | | | | Near-term EBIT margin 2014 | 13.0% | | | | | | | Near-term EBIT margin 2015 | 13.0% | | | | | | | EBIT margin - Terminal | 13.0% | | | | | | | est. Value of NKE Equity at 5/31/2013 | $ 57,467 | | | | | | | # shares outstanding at
Assign a random variable x, where the value of x is equal to the number of heads observed in the flips. 6) What is the probability of observing 30 or more heads in 50 flips? 7) What is the probability of observing more than 35 tails in 50 flips? Use the following scenario to answer the next 3 questions. Suppose a student in Business Statistics has no been attending class this quarter but decides to take the exam anyway.
For example, if 50% of the errors for a specific item category, i.e. the A/F ratios, fell between 0.8 and 1.2 in the past years, then the company assumes that with a probability of 0.5, the error for an item belonging to this specific category will fall between 0.8 and 1.2 this coming year. For a new item that has not any past data, there is a part of judgement from the people in charge of forecast. They will look at the demand generated by this new item: if the demand is incremental then they have to approximate new figures, but if it is not then they have to take in account of much demand it will steal from other items. 2.
Let’s see some profitability ratio to have some in-depth discussion. On ROA, eBay and Amazon are 7.63% and 8.61%, separately, Amazon earned net income more effectively than eBay, from the data. On ROE, eBay is 18.69% and Amazon is 22.44%, it shows management in Amazon is more effective in
(50%) My 2 catagorys Professor: Konya Cipul-Weber Date 25 July 2012 In this paper, I will discuss the differences between a high involvement purchase and a low involvement purchase. I will apply what I have read and believe I understand from the module one background reading materials and PowerPoint presentations while I talk about my two purchases. I have chosen underwear (low involvement) and computer Software (high involvement). Using the five stage model of the Purchase
Read each question carefully The Final is 2 and 1/2 hours long or 150 minutes Homework and Quizzes: 150 pts Midterms: 550 pts Final Exam : 300 pts Final Grade over 1000 Letter Grade Note that you need at least 600/1000 to make a grade of C − . 1 Exercise 1. (30 points) If u = i − j + k and v = i + j + k • Find the cosine of the angle between the vectors u and v • For what values of the constant b are the vectors v orthogonal? and w = i + b j • Find the area of the parallelepiped spanned by the vectors u and v 2 Exercise 2. (30 points) • Find the vector equation of the line through P (2, 1, 3) perpendicular to the plane 3x − 4y + z − 5 = 0 • Two particles P1 and P2 have position vector r1 (t) =< 1, t + 3, −t > and r2 (t) =< 2t − 1, 1 + 3t2 , t3 − 2 > respectively at time t. Do the particles collide?
The first class in a relative frequency table is 50–59 and the corresponding relative frequency is 0.2. What does the 0.2 value indicate? Answer: 0.2 is equal to 1/5 or 20%, 0.2 indicates 20% of the data values are in this particular interval. 3. When you add the values 3, 5, 8, 12, and 20 and then divide by the number of values, the result is 9.6.
CONFIDENTIAL COURSE COURSE CODE EXAMINATION TIME : : : : HEALTH PSYCHOLOGY HPY450 APRIL 2008 2 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of three (3) parts : PART A (60 Questions) PART B (20 Questions) PART C (2 Questions) Answer ALL questions from all three (3) parts : i) ii) iii) Answer PART A in the Objective Answer Sheet. Answer PART B in the True/False Answer Sheet. Answer PART C in the Answer Booklet. Start each answer on a new page.