Reference no: EM132810275
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
-Construct a scatter plot with this data.
-Do you observe a relationship between both variables?
-Use Excel to fit a linear regression line to the data. Show the fitted regression model?
-What is the slope? What does the slope tell us? Is the slope significant?
-What is the intercept? Is it meaningful?
-What is the value of the regression coefficient? What is the value of the coefficient of determination, r^2? What does r^2 tell us?
-Use the model to predict sales and the business spends $950,000 on the advertisement. Does the model underestimate or overestimates ales? (answer in Exel)
|
What high hopes inc enterprise value with a terminal value
: Based on the foregoing, if the required return is 14%, High Hopes Inc.'s Enterprise Value with a terminal value of Php673,750,000 is about Php?
|
|
Outcomes of the ikea manager training program
: What do managers learn and how do they learn? In your opinion, are there any gaps in intended learning outcomes? If so, please discuss.
|
|
Estimate of next year risk premium for guide mining
: Expected beta of Guide Mining is 2.2. Using the CAPM, the analyst's estimate of next year's risk premium for Guide Mining's stock is closest to
|
|
What the net present value of the net cash flows for year
: If Joy Corporation projects 12% growth year on year and has a required rate of return of 8%, the net present value of the net cash flows for the next 3 years is
|
|
What is the value of the regression coefficient
: Understanding how process variables relate to each other helps businesses predict and improve performance. For example, a marketing manager
|
|
How many times tanner corporation common stock is selling
: Shares outstanding in 2007 was 50,000 shares. Tanner Corporation's common stock is selling for P50 per share on the Stock exchange how many times?
|
|
What allocation rate would be applied at the start
: Yupick produces and sells 3 products, Using a single-rate cost allocation, what allocation rate would be applied at the start of the production period?
|
|
Conduct an accurate job analysis
: In order to conduct an accurate job analysis, Human Resource professionals rely on various stakeholders
|
|
What are the uses of performance appraisals
: What are the uses of performance appraisals? What are some of the various problems that are typically associated with performance appraisals?
|