Does the model underestimate or overestimates ales

Assignment Help Accounting Basics
Reference no: EM132737117

Respond to the following in a minimum of 175 words: on 3 different documents

Models help us describe and summarize relationships between variables. Understanding how process variables relate to each other helps businesses predict and improve performance. For example, a marketing manager might be interested in modeling the relationship between advertisement expenditures and sales revenues.

Consider the dataset below and respond to the questions that follow:

Advertisement (000)         Sales (000)

1068                                     4489

1026                                      5611

767                                       3290

885                                        4113

1156                                      4883

1146                                       5425

892                                       4414

938                                      5506

769                                     3346

677                                     3673

1184                                   6542

1009                                    5088

Problem 1: Construct a scatter plot with this data.

Problem 2: Do you observe a relationship between both variables?

Problem 3: What is the slope? What does the slope tell us?Is the slope significant?

Problem 4: What is the intercept? Is it meaningful?

Problem 5: Use the model to predict sales and the business spends $950,000 in advertisement. Does the model underestimate or overestimates ales?

Reference no: EM132737117

Questions Cloud

What is the company free cash flow : Dukas Corporation's net cash provided by operating activities was $218,000; its net income was $203,000; What is the company free cash flow
Analyze advantages of having a large cash balance : Analyze advantages of having a large cash balance. Identify two companies with sizable amounts of cash and liquid investments on their balance sheets.
Calculate the amount of budgeted sales for its first quarter : It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate the amount of budgeted sales for its first quarter
Discuss the budgeting tools utilized by both government type : Discuss the budgeting tools utilized by both government types. Discuss the impact of market inefficiencies on both government types.
Does the model underestimate or overestimates ales : How process variables relate to each other helps businesses predict and improve performance. Does the model underestimate or overestimates ales?
Who are the stakeholders in this situation : Andrew Reyes is the president, founder and majority owner of Safe Medical Corporation, Who are the stakeholders in this situation
Identify primary needs associated with many persons : With the two client populations that you have indicated, identify 3-5 primary needs associated with many persons with this population.
Calculate the amount of bad debt expense for the year : Almeda wrote off accounts of $36,825 as uncollectible. Calculate the amount of bad debt expense for the year if Almeda estimates the expense as 2% of sales
How does the wh framework help managers : What type of decisions would the WH Framework chart help?How does the WH Framework help managers with making business decisions?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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