1) Consider the following data for two variables, x and y.
| x | 9 | 32 | 18 | 15 | 26 |
|---|---|---|---|---|---|
| y | 10 | 20 | 21 | 17 | 21 |
(a) Develop an estimated regression equation for the data of the form
ŷ = b0 + b1x.
(Round b0 to two decimal places and b1 to three decimal places.) ŷ =
2)
A statistical program is recommended.
A study investigated the relationship between audit delay (Delay), the length of time from a company's fiscal year-end to the date of the auditor's report, and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow.
| Industry | A dummy variable coded 1 if the firm was an industrial company or 0 if the firm was a bank, savings and loan, or insurance company. |
|---|---|
| Public | A dummy variable coded 1 if the company was traded on an organized exchange or over the counter; otherwise coded 0. |
| Quality | A measure of overall quality of internal controls, as judged by the auditor, on a five-point scale ranging from "virtually none" (1) to "excellent" (5). |
| Finished | A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates "all work performed subsequent to year-end" and 4 indicates "most work performed prior to year-end." |
A sample of 40 companies provided the following data.
| Delay | Industry | Public | Quality | Finished |
|---|---|---|---|---|
| 62 | 0 | 0 | 3 | 1 |
| 45 | 0 | 1 | 3 | 3 |
| 54 | 0 | 0 | 2 | 2 |
| 71 | 0 | 1 | 1 | 2 |
| 91 | 0 | 0 | 1 | 1 |
| 62 | 0 | 0 | 4 | 4 |
| 61 | 0 | 0 | 3 | 2 |
| 69 | 0 | 1 | 5 | 2 |
| 80 | 0 | 0 | 1 | 1 |
| 52 | 0 | 0 | 5 | 3 |
| 47 | 0 | 0 | 3 | 2 |
| 65 | 0 | 1 | 2 | 3 |
| 60 | 0 | 0 | 1 | 3 |
| 81 | 1 | 0 | 1 | 2 |
| 73 | 1 | 0 | 2 | 2 |
| 89 | 1 | 0 | 2 | 1 |
| 71 | 1 | 0 | 5 | 4 |
| 76 | 1 | 0 | 2 | 2 |
| 68 | 1 | 0 | 1 | 2 |
| 68 | 1 | 0 | 5 | 2 |
| 86 | 1 | 0 | 2 | 2 |
| 76 | 1 | 1 | 3 | 1 |
| 67 | 1 | 0 | 2 | 3 |
| 57 | 1 | 0 | 4 | 2 |
| 55 | 1 | 1 | 3 | 2 |
| 54 | 1 | 0 | 5 | 2 |
| 69 | 1 | 0 | 3 | 3 |
| 82 | 1 | 0 | 5 | 1 |
| 94 | 1 | 0 | 1 | 1 |
| 74 | 1 | 1 | 5 | 2 |
| 75 | 1 | 1 | 4 | 3 |
| 69 | 1 | 0 | 2 | 2 |
| 71 | 1 | 0 | 4 | 4 |
| 79 | 1 | 0 | 5 | 2 |
| 80 | 1 | 0 | 1 | 4 |
| 91 | 1 | 0 | 4 | 1 |
| 92 | 1 | 0 | 1 | 4 |
| 46 | 1 | 1 | 4 | 3 |
| 72 | 1 | 0 | 5 | 2 |
| 85 | 1 | 0 | 5 | 1 |
(a)
Develop the estimated regression equation using all of the independent variables. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.)
ŷ =
−5.21x4−1.80x3+1.65x2+12.11x1+78.83
(b)
Did the estimated regression equation developed in part (a) provide a good fit? Explain. (Use α = 0.05. For purposes of this exercise, consider an adjusted coefficient of determination value high if it is at least 50%.)
Yes, testing for significance shows that the overall model is significant and all the individual independent variables are significant.No, the low value of the adjusted coefficient of determination does not indicate a good fit. Yes, the low p-value and high value of the adjusted coefficient of determination indicate a good fit.No, testing for significance shows that all independent variables except Public are not significant.
What does this scatter diagram indicate about the relationship between Delay and Finished?
The scatter diagram suggests no relationship between these two variables.The scatter diagram suggests a linear relationship between these two variables. The scatter diagram suggests a curvilinear relationship between these two variables.
(d)
On the basis of your observations about the relationship between Delay and Finished, use best-subsets regression to develop an alternative estimated regression equation to the one developed in (a) to explain as much of the variability in Delay as possible. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.)
ŷ =
−38.56x4−2.28x3+7.45x2+14.27x1+113.01
In: Statistics and Probability
The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividends:
|
Time |
Brangus cattle Comapny |
||
|
1 |
$13 |
||
|
2 |
10 |
||
|
3 |
14 |
||
|
4 |
20 |
||
|
5 |
27 |
||
a. Calculate the annual rate of return for EACH YEARr from the above information.
b. What is the arithmetic average rate of return earned by investing in Brangus Cattle Company's stock over this period?
c. What is the geometric average rate of return earned by investing in Brangus Cattle Company's stock over this period?
d. Which type of average rate of return best describes the average annual rate of return earned over the period (the arithmetic or geometric)? Why?
In: Finance
Problem 14-1 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3000 cases. A case of the soft drink costs R&B $3. Ordering costs are $19 per order and holding costs are 27% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: a.Economic order quantity. If required, round your answer to two decimal places. b.Reorder point. c.Cycle time. If required, round your answer to two decimal places. d. total annual cost. If required, round your answer to two decimal places.
In: Finance
The COVID-19 pandemic has forced people to work from home. The
following are age data from a sample of people who work from home:
18 54 20 46 25 48 53 27 26 37 40 36 42 25 27 33 28 40 45 25
a. Calculate the average, median, quartile 1 and quartile 3
b. Calculate range, interquartile range, variance, standard
deviation, and coefficient of variation.
c. Draw a box plot, give a conclusion
Note: no handwritten answer would be very appreciated. thanks.
In: Statistics and Probability
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 A negative $ 48−$48 $ 27$27 $ 21$21 $ 21$21 $ 13$13 B negative $ 98−$98 $ 22$22 $ 39$39 $ 48$48 $ 60$60 a. What are the IRRs of the two projects? b. If your discount rate is 4.6 %4.6%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently?
In: Finance
An object with mass 70 kg moved in outer space. When it was at location <7, -35, -5> its speed was 5.0 m/s. A single constant force <210, 400, -150> N acted on the object while the object moved from location <7, -35, -5> m to location <11, -27, -8> m. Then a different single constant force <140, 250, 210> N acted on the object while the object moved from location <11, -27, -8> m to location <17, -31, -3> m. What is the speed of the object at this final location?
In: Physics
In: Civil Engineering
3) Mercadolibre is an Argentinian based online shopping platform partially owned by Amazon. The company has had moderate success growing their topline at a steady rate of 30% while maintaining 18.5% net margins that they expect to maintain for the next three years. In year 4, residual income is expected to grow at 7.2% indefinitely. In FY 2018 they generated ARP 25,458,900,000 in revenue while their balance sheet showed that they had ARP 96,236,000,000 in assets while also having ARP 53,987,120,000 in liabilities. The company maintains a dividend policy of 4.2%. The required return on equity is 13.65%. (5 pts for each subsections)
A) What is the initial Book Value of Mercadolibre?
B) What is the residual income in 2019?
C) What is the value of the company in 2018? '
D) What would be a problem with using the residual income model for Mercadolibre?
In: Finance
Three different companies each purchased trucks on January 1, 2018, for $76,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 81,000 miles in 2018, 55,000 miles in 2019, 46,000 miles in 2020, and 71,000 miles in 2021. Each of the three companies earned $65,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.)
In: Accounting
1. The Go Koozies Company sells Koozies at football games. There are 12 games each year. The Go Koozie Sales team typically sells 1,000 koozies per game at $7 a piece. What is Total Revenue expected for ABC Company.
2. Go Koozies purchases the koozies for $1.50 per Koozie and then pays a company .25 per Koozie to add graphics for each game. What is the Variable Cost?
3. Go Koozie pays $25,000 a year in rent and $12,000 in Payroll. Selling 12,000 Koozies. What is Go Koozies Total Cost?
4. What is Go Koozie's Break-Even point?
5. If Go Koozie wants to make a target profit of $25000, based on demand of 15000, what price should they sell the koozie to achieve their target Profit?
In: Accounting