Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is considering the use of simple and multiple linear regression analysis to forecast annual sales because previous forecasts have been inaccurate. The sales forecast will be used to initiate the budgeting process and to identify better the underlying process that generates sales.Larry Husky, the controller of Lockit, has considered many possible independent variables and equations to predict sales and has narrowed his choices to four equations. Husky used annual observations from twenty prior years to estimate each of the four equations.Following is a definition of the variables used in the four equations and a statistical summary of these equations:St = Forecasted sales (in dollars) for Lockit in time period t St-1 = Actual sales (in dollars) for Lockit in time period t - 1 Gt = Forecasted United States gross national product in time period t G t-1 = Actual United States gross national product in time period t - 1 N t-1 = Lockit's net income in time period t - 1Statistical Summary of Four EquationsCoefficientsDependent Independent Standard CoefficientDependent Independent Variable Variable Error of ofEquation Variable Variable(s) (Intercept) (Rate) the Estimate Correlation t-Value1 St St-1 +$ 500,000 +$ 1.10 $500,000 +.97 5.502 St Gt +$1,000,000 +$ .00001 $510,000 +.95 10.003 St Gt-1 +$ 900,000 +$.000012 $520,000 +.90 5.00St +$ 600,000 $490,000 +.98Nt-1 +$ 10.00 4.004 Gt +$.000002 1.50Gt-1 +$.000003 3.00Required:Write Equations 2 and 4 in the form y = a + bx.If actual sales are $1,500,000 in 2013, what would be the forecasted sales for Lockit in 2014 Explain the meaning and significance of the coefficient of correlation. Why might Larry Husky prefer Equation 3 to Equation 2?Explain the advantages and disadvantages of using Equation 4 to forecast annual sales.
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: - Explain the goals and uses of special journals.
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.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
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, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd