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

  Why working capital management is important for business

Explain why working capital management is important for a business. and Working capital is often describe as ‘life blood’ of every organization.

  The interest is discounted monthly

Company XYZ purchased some machinery and gave a five-year note with a maturity value of $20,000. The discount rate is 8% annually and the interest is discounted monthly. How much did the company borrow?

  Amount of money that family needs to pay every six months

A family took home improvement loan for $25, 000. Interest on the loan at a rate i^(2) = 10% must be paid at the end of each six month period. Also at the end of each six month period payments are made into the sinking fund that earns j^(2) = 6%. At ..

  Contribution to its endowment fund

A college received a contribution to its endowment fund of $2 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?

  Contribute per month to reach her goal

How much money does she need to contribute per month to reach her goal?

  Breakeven size of underlying movement for calendar spread

What is the breakeven size of underlying movement for your calendar spread?

  What is the break-even salvage value of project

A project in Malaysia costs $6,000,000. What is the break-even salvage value of this project?

  Prepare single-step income statement for the year ended

Prepare a single-step income statement for the year ended December 31, 2012. Include earnings per share for earnings before extraordinary items and net income. Prepare a multiple-step income statement. Include earnings per share for earnings before e..

  Dividend growth rate is expected to be constant

Ackert Company's last dividend was $0.50. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (r) is 12.0%. What is the best estimat..

  An implicit cost of adding debt to the capital structure

An implicit cost of adding debt to the capital structure is that it:

  Why are there operating and capital budgets

Why does a budget document often provide several years of budgetary data? Why are there operating and capital budgets?

  What is your debt service for the first two years

You have purchased a multi tenant office building for $15,000,000. Your acquisition costs associated with this purchase are $25,000. The estimated land value is $3,000,000, of which you estimate the depreciable land portion at $1,000,000. What is you..

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