Below is the income statement of a publicly-traded biotech company from 2004 until 2007:

The company’s stock was trading for $2 in 2004 and is now trading for $7. Are investors irrational? Should the stock be sold short? Is it possible for a company in the biotech business to be worth something even though it has no current sales? What can justify the billion-dollar values of technology companies which have yet to earn any profits?

I want to know how to solve the following in excel. What is the x value and what is the Y value using the data table below?

Wal-Mart is the second largest retailer in the world. The data file (Wal-Mart Revenue 2004-2009.xlsx) is posted below the case study one file, and it holds monthly data on Wal-Mart’s revenue, along with several possibly related economic variables.

A. Develop a linear regression model to predict Wal-Mart revenue, using CPI as the only independent variable.

B. Develop a linear regression model to predict Wal-Mart revenue, using Personal Consumption as the only independent variable.

C. Develop a linear regression model to predict Wal-Mart revenue, using Retail Sales Index as the only independent variable.

D. Which of these three models is the best? Use R-square values, Significance F values, p-values and other appropriate criteria to explain your answer.

E. Generate a scatter plot, residual plot and normal probability plot for the best model in part (d) and comment on what you see.

(c) Does it seem that Wal-Mart’s revenue is closely related to the general state of the economy?

Identify and remove the six cases corresponding to December revenue.

(f) Does it seem that Wal-Mart’s revenue is closely related to the general state of the economy? Use all plots and statistical criteria on the Excel Regression output to explain it. (g) Compare the results of parts (a) and (d), which of these two models is better? Use R-square values, adjusted R-square values, Significance F values, p-values, scatter plots, residual plots and normal probability plots to explain your answer.

ACTIVITY 2

Use the information below to calculate the CPI and inflation rate

Basket                  8 pair of shoes                  4 oil changes

Compute the cost of the basket of goods.

Calculate the CPI use 2003 as the base year.

Calculate the inflation rate use beginning with the inflation rate between 2003 and 2004

Use the information below to calculate the CPI and the Inflation rate

Basket                  10 DVDs                             6 gallons of Milk

Compute the cost of the basket of goods

Calculate the CPI use 2004 as the base year.

Calculate the inflation rate beginning with the inflation rate between 2004 and 2005

Suppose a local news anchorperson in 1960 made $30,000 and the price level in 1960 was 45. Today’s price level is 210. What is the 1960’s local news anchorperson salary worth in today’s dollars.(This is similar to the Babe Ruth example in the notes

Suppose the nominal interest rate is 14% and the inflation rate is 5%. What is the real interest rate?

Suppose the real interest rate is 7% and the inflation rate is 6%. What is the nominal interest rate?

1. There are three columns of data: a monthly date, a closing price for an individual stock, and the market close.
   1. Calculate a monthly return series from the closing monthly prices of both the market and the individual security.
   2. Calculate the arithmetic mean return and the standard deviation of the monthly return for both series.
   3. Calculate the geometric mean return for both series.
   4. Calculate the beta of the individual security.

Date   Closing Price   Market Closing Price   Security Return   Market Return
12/1/2003   43.73   1111.92      
1/1/2004   42.43   1131.13      
2/1/2004   43.05   1144.94      
3/1/2004   43.56   1126.21      
4/1/2004   43.8   1107.3      
5/1/2004   44.47   1120.68      
6/1/2004   43.93   1140.84      
7/1/2004   38.17   1101.72      
8/1/2004   38.91   1104.24      
9/1/2004   35.06   1114.58      
10/1/2004   35.59   1130.2      
11/1/2004   34.63   1173.82      
12/1/2004   36.68   1211.92      
1/1/2005   36.55   1181.27      
2/1/2005   37.7   1203.6      
3/1/2005   36.95   1180.59      
4/1/2005   38.52   1156.85      
5/1/2005   39.57   1191.5      
6/1/2005   37.26   1191.33      
7/1/2005   39.05   1234.18      
8/1/2005   39.26   1220.33      
9/1/2005   38.79   1228.81      
10/1/2005   38.42   1207.01      
11/1/2005   38.59   1249.48      
12/1/2005   36.44   1248.29      
1/1/2006   37.41   1280.08      
2/1/2006   37.94   1280.66      
3/1/2006   38.13   1294.87      
4/1/2006   38.21   1310.61      
5/1/2006   40.09   1270.09      
6/1/2006   39.46   1270.2      
7/1/2006   40.81   1276.66      
8/1/2006   41.1   1303.82      
9/1/2006   41.26   1335.85      
10/1/2006   43.15   1377.94      
11/1/2006   43.54   1400.63      
12/1/2006   44.86   1418.3      
1/1/2007   44.51   1438.24      
2/1/2007   43.4   1406.82      
3/1/2007   44.94   1420.86      
4/1/2007   48.87   1482.37      
5/1/2007   49.62   1530.62      
6/1/2007   49.31   1503.35      
7/1/2007   49.12   1455.27      
8/1/2007   50.69   1473.99      
9/1/2007   54.5   1526.75      
10/1/2007   58.57   1549.38      
11/1/2007   59.22   1481.14      
12/1/2007   58.52   1468.36      
1/1/2008   56.26   1378.55      
2/1/2008   55.74   1330.63      
3/1/2008   58.42   1322.7      
4/1/2008   56.5   1385.59      
5/1/2008   54.95   1400.38      
6/1/2008   50.21   1280      
7/1/2008   49.75   1267.38      
8/1/2008   50.3   1282.83      
9/1/2008   51.45   1164.74      
10/1/2008   42.86   968.75      
11/1/2008   45.99   896.24      
12/1/2008   44.42   903.25      
              
Arithmetic mean              
Geometric mean               
Standard deviation              
              
Covariance              
Beta              

Suppose you determine that a firm's real sales in 2006 would be $10 million (in terms of 2004 dollars). What would the firm's nominal 2006 sales be assuming an annual inflation of 3% in both 2005 and 2006?

Group of answer choices

$10.609 million

$9.709 million

$9.426 million

Not possible to compute this without knowing CPIs in 2004 and 2006

$10.3 million

Scores turned in by an amateur golfer at the Bonita Fairways Golf Course in Bonita Springs, Florida, during 2005 and 2006 are as follows: 2005 Season 73 77 78 76 74 72 74 76 2006 Season 70 69 74 76 84 79 70 78 Calculate the mean (0 decimals) and the standard deviation (to 2 decimals) of the golfer's scores, for both years. 2005 Mean Standard deviation 2006 Mean Standard deviation What is the primary difference in performance between 2005 and 2006? What improvement, if any, can be seen in the 2006 scores?

Please asnwer all parts of question 2

Question 2:         Use Data2 Sheet

2a.          Conduct a 2-level sort: on Fiscal Year (Largest to Smallest) and then on Company code (Z to A).

                                Report company code and year of 5^th record (do not count the header of the table).

                                In Answer Sheet, put Company code and year continuously like: K2002

2b.          For each company, calculate the annual sales growth. Report the company code and year of the 8^th Highest growth number.

                Annual sales growth = Sale year (i)/Sale year (i-1) -1

                                In Answer Sheet, put Company code and year continuously like: K2002

2c.          For each year, if you want to find a firm with the smallest Sales, how will you sort the data so that you can systematically identify these records? (this sort answers a question such as: in 2002, which firm has the lowest sales number?)

                                Sort first by:

                                Then by:

                                Then by:

                                Then by:

In Answer Sheet, we use column A, B, C, D instead of typing Fiscal year (column A), Company code (column B), Sales (column C) …

So if you think you should sort on Fiscal Year (column A), then on Company Code (column B), then on Sales (column C), simply type ABC

Estimate a linear time trend for the Netflix data using data for the period 2000Q1 ... Estimate a linear time trend for the Netflix data using data for the period 2000Q1 to 2008Q4. a. Carry out a preliminary analysis of the data including a line fit plot and interpret your results. b. Test whether the slope is significantly different from zero, using alpha = 0.05. c. Compute S and R2 and interpret the results. d. Compute point forecasts for sales in each quarter of 2009. e. Comment upon your results. Note: you can use Regression under the Data Analysis tool in Microsoft Excel.