6. Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. The data table linked below shows the 30-year fixed average mortgage rate for the month of December every year between 1987 and 2010.
Year Rate_(%)
1987 11.09
1988 11.04
1989 10.17
1990 9.93
1991 8.57
1992 8.3
1993 7.25
1994 9.04
1995 7.21
1996 7.06
1997 7.07
1998 6.84
1999 7.65
2000 7.74
2001 7.07
2002 6.84
2003 6.94
2004 6.79
2005 7.02
2006 6.82
2007 6.63
2008 5.88
2009 5.64
2010 5.4
b. Forecast the average December mortgage rate in 2011 using a trend projection (Round to two decimal places as needed.)
c. Calculate the MAD for this forecast. (Round to two decimal places as needed.)
d. Determine the Durbin–Watson statistic (Round to two decimal places as needed.)
e. Identify the critical values. (Round to two decimal places as needed.)
In: Statistics and Probability
6. Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. The data table linked below shows the30-year fixed average mortgage rate for the month of December every year between 1987 and 2010.
Year Rate_(%)
1987 11.09
1988 11.04
1989 10.17
1990 9.93
1991 8.57
1992 8.3
1993 7.25
1994 9.04
1995 7.21
1996 7.06
1997 7.07
1998 6.84
1999 7.65
2000 7.74
2001 7.07
2002 6.84
2003 6.94
2004 6.79
2005 7.02
2006 6.82
2007 6.63
2008 5.88
2009 5.64
2010 5.4
b. Forecast the average December mortgage rate in 2011 using a trend projection (Round to two decimal places as needed.)
c. Calculate the MAD for this forecast. (Round to two decimal places as needed.)
d. Determine the Durbin–Watson statistic (Round to two decimal places as needed.)
e. Identify the critical values. (Round to two decimal places as needed.)
In: Statistics and Probability
Consider the following Data:
|
Year |
Tea |
Coffee |
|---|---|---|
|
1994 |
42.4 |
95.85 |
|
1995 |
42.12 |
97.28 |
|
1996 |
47.61 |
87.62 |
|
1997 |
60.86 |
92.04 |
|
1998 |
55.58 |
99.21 |
|
1999 |
50.61 |
95.63 |
|
2000 |
49.89 |
97.42 |
|
2001 |
56.77 |
93.93 |
|
2002 |
62.53 |
95.67 |
|
2003 |
68.31 |
99.25 |
|
2004 |
69.88 |
101.31 |
|
2005 |
72.99 |
101.68 |
|
2006 |
71.36 |
104.02 |
|
2007 |
90.78 |
106.09 |
|
2008 |
74.7 |
105.8 |
|
2009 |
67.15 |
102.15 |
|
2010 |
67.03 |
101.15 |
|
2011 |
87.83 |
104.05 |
|
2012 |
93.4 |
102.7 |
|
2013 |
78.9 |
105.28 |
|
2014 |
111.32 |
106.3 |
|
2015 |
98.39 |
104.96 |
|
2016 |
105.25 |
103.57 |
In: Statistics and Probability
In: Finance
Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to shareholders. The following information for the quarter has been compiled:

Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through various media throughout the year. The income tax rate for Branson’s level of operations in the first quarter is 20%, but management estimates the effective rate for the entire year will be 25%.
Required:
Prepare the income statement to be included in Branson’s first quarter interim report.
In: Accounting
Assume that Big Company owns 40% of the stock of Little. Big is the largest shareholder of Little. Little is not a publicly traded company, and there is no easy way to know the fair value of its stock. Explain why using the equity method of accounting for this investment provides financial statement users with better information than the cost method would. I am looking for two or more ways in which the equity method gives information that better reflects either income or the value of the investment, or both, than the cost method.
In: Accounting
In late 2004 and early 2005, the price of raw coffee beans jumped as much as 50% from the previous year. In response, the price of roasted coffee rose about 14%. Similarly, in late 2014 and early 2015, the price of raw beans fell by about 25%, yet the price of roasted coffee fell by only a few percentage points. Why did the roasted coffee price change less than in proportion to the rise in the cost of raw beans?
In: Economics
In December 2004 new soybean varieties were released for planting in the Spring of 2005. These varieties (IA2070 and IA2071) produce oil that can be labelled as low in saturated fat according to the Food and Drug Administration (FDA). As a farm owner, you are considering planting these new varieties. However, you would like to compare their yield with that of other soybean varieties that are usually planted. An experiment conducted in central Iowa in the Spring 2004 provided the following data. Plots were randomly assigned to soybean varieties. Yield is measured in bushels/acre at 13% moisture.
|
Variety |
IA2065 |
IA2068 |
IA2070 |
IA2071 |
|
Mean yield |
60.3 |
59.6 |
56.5 |
56.8 |
|
Standard deviation |
2.9 |
2.6 |
1.9 |
2.2 |
|
# of plots |
7 |
7 |
7 |
7 |
a) Test the null hypothesis that the mean yield is the same for all variables. Is the method you used a valid method?
b) Calculate the pooled standard deviation
c) Use a Tukey-Kramer method to compare all pairs of mean yields at alpha=0.05
d) Give a 95% confidence interval for the mean yield of variety IA2070
In: Statistics and Probability
|
Month |
Sales (2005) |
Sales (2006) |
|
Jan |
5 |
21 |
|
Feb |
8 |
20 |
|
Mar |
10 |
29 |
|
Apr |
18 |
32 |
|
May |
26 |
44 |
|
Jun |
35 |
58 |
|
Jul |
28 |
46 |
|
Aug |
20 |
32 |
|
Sep |
14 |
27 |
|
Oct |
8 |
13 |
|
Nov |
6 |
11 |
|
Dec |
26 |
52 |
a.Plot the data using Minitab. What kind of pattern do you observe?
b.Develop a trend line equation for this data (Use Minitab).
c.Decompose the above time series using a multiplicative model. Store the trend line, detrended data, seasonals, seasonally adjusted data. Then, calculate CI (Hint: CI = Deseasonalized data / Trend), C as a centered 3-moving average of CI values, and finally I (=CI/C).
d.Next, compute forecasts for the next 6 months using the trend line equation and the seasonal indices you have computed. (Hint: What should you assume for C and I components?)
In: Operations Management
Explain how the below ratio could be affected if there was an increase in Publicly traded hospital costs or supply chain disruptions occurred for materials including equipment, medications and other supplies? And explain how these ratio can affect the Publicly traded hospital financial statement
Increase in costs
a. Debt service coverage ratio (Net Income/Debt Service)
b. Profit Margin Ratio (Net Income/Net Sales)
c. Return on Assets (Net Income/ total assets)
Supply chain disruptions
a. Current Ratio (Current Assets/Current Liabilities)
b. Inventory turnover (Net Sales/ Average Inventory)
c. Debt to total assets (debt/total assets)
d. Return on assets (Net Income/ total assets)
In: Finance