Calculate measurement error using mse and mad

Assignment Help Financial Management
Reference no: EM132034338

Question

The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.

Year

Mergers

Year

Mergers

2000

46

2006

83

2001

46

2007

123

2002

62

2008

97

2003

45

2009

186

2004

64

2010

225

2005

61

2011

240

a. Calculate a 5-year moving average to forecast the number of mergers for 2012.

b. Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

c. Calculate a 5-year weighted moving average to forecast the number of mergers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.

d. Use regression analysis to forecast the number of mergers in 2012.

Reference no: EM132034338

Questions Cloud

Issues that affect incremental cash flow : What is the relationship between incremental cash flow and new projects and what are the issues that affect incremental cash flow.
Return equity of what percentage : A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and total liabilities of $700,000 has a return equity
What potential threats to internal validity do you see : What potential threats to internal validity do you see that your colleague has not identified? Consider the ethical implications your colleague has described.
How much would and investor : How much would and investor with a 10% stake in the company and a 20% personal income tax rate be able to "take home" after taxes
Calculate measurement error using mse and mad : Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.
Forward price and the value of the forward contract : Nine months later, the price of the stock is $45 and the risk-free interest rate is still 7%. What are the forward price and the value of the forward contract?
What is the capital risk of the loan : What is the capital (loan) risk of the loan if the current average level of interest rates for this category of bonds is 12 percent?
What types of assets are defined as cash in accounting : Many people think of cash as coins and notes. In accounting cash has a broader meaning. What types of assets are defined as cash in accounting?
What are common stereotypes for women : What are common stereotypes for women? How have these stereotypes changed over time? What stereotypes have not really changed?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd