Questions
Please use R to solve and explain fully Market Planning, Inc., a marketing research firm, has...

Please use R to solve and explain fully

Market Planning, Inc., a marketing research firm, has obtained the prescription sales data in the table below for n = 20 independent pharmacies.

These variables can be described precisely as follows:

y = average weekly prescription sales over the past year (in units of $1000)

x1 = floor space (in square feet)

x2= percent of floor space allocated to the prescription department

x3 = number of parking spaces available for the store

x4 = monthly per capita income for the surrounding community (in units of $100)

x5 is an independent variable that equals 1 if the pharmacy is located in a shopping center and equals 0 otherwise (x5 is called a dummy variable)

a. Output the stepwise regression of the data in this exercise. Set, both alphaentry and alphastay equal to .15. What is the final model arrived at by stepwise regression?

b. Perform a backward elimination procedure on the same data. Describe the order in which the independent variables are removed by the backward elimination procedure.

c. Is the model arrived at by backward elimination the same as the model arrived at by stepwise regression?

Pharmacy

y

x1

x2

x3

x4

x5

1

22

4900

9

40

18

1

2

19

5800

10

50

20

1

3

24

5000

11

55

17

1

4

28

4400

12

30

19

0

5

18

3850

13

42

10

0

6

21

5300

15

20

22

1

7

29

4100

20

25

8

0

8

15

4700

22

60

15

1

9

12

5600

24

45

16

1

10

14

4900

27

82

14

1

11

18

3700

28

56

12

0

12

19

3800

31

38

8

0

13

15

2400

36

35

6

0

14

22

1800

37

28

4

0

15

13

3100

40

43

6

0

16

16

2300

41

20

5

0

17

8

4400

42

46

7

1

18

6

3300

42

15

4

0

19

7

2900

45

30

9

1

20

17

2400

46

16

3

0

In: Statistics and Probability

Your first job out of college will pay you $47,000 in year 1 (exactly one year...

Your first job out of college will pay you $47,000 in year 1 (exactly one year from today), growing at a rate of 3.9% per year thereafter. You will also receive a one time bonus of $22,000 at the same time as your first salary. You plan to retire in 44 years (you'll receive 44 years of salary). If the applicable discount rate is 5%, what is the present value of these future earnings today? Round to the nearest cent.

In: Finance

Your first job out of college will pay you $47,000 in year 1 (exactly one year...

Your first job out of college will pay you $47,000 in year 1 (exactly one year from today), growing at a rate of 3.9% per year thereafter. You will also receive a one time bonus of $22,000 at the same time as your first salary. You plan to retire in 44 years (you'll receive 44 years of salary). If the applicable discount rate is 5%, what is the present value of these future earnings today? Round to the nearest cent.

In: Finance

1) A 7% Commonwealth government bond has three years to maturity. Given that the bond pays...

1) A 7% Commonwealth government bond has three years to maturity. Given that the bond pays coupons semi-annually (i.e. twice a year) and a coupon payment has just been made, what is the present value (price) of the bond if the market interest rate is 9% and the face value of the bond is $100,000?

2) You have observed the returns for an investment in Telstra shares for the last five years. This shows returns of 23%, -17%, 8%, 22% and 3%. Calculate the average return, variance, and standard deviation of these shares.

3) You own a portfolio that is invested as follows: $11,600 in shares of Rendezvous hotel, $7,800 in shares of Crown Plaza, $14,900 in shares of Carlton & United Breweries, and $3,200 in shares of Domino’s Pizza . What is the portfolio weight of shares of Carlton & United Breweries?

4) One year ago, you bought a share for $36.48. You received a dividend of $1.62 per share last month and sold the share today for $40.18. What is the capital gains yield on this investment?

In: Finance

Select a company of your choice, Aflac, and write a six to eight (6-8) page paper...

Select a company of your choice, Aflac, and write a six to eight (6-8) page paper in which you:

1.Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty.

2.Offer advice for improving risk management.

3.Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.

4.Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.

5.Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.

6.Examine the organizational structure of your company and suggests ways it can be changed to improve the overall profitability.

7.Use at least five (5) quality academic resources in this assignment. Note: One of your references regarding your should have been published within the last 6 months. Note: Wikipedia does not qualify as an academic resource.

In: Economics

You are serving on a jury. A plaintiff is suing the city for injuries sustained after...

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street-sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following:

(a)

The present value of two years’ back pay. The plaintiff’s annual salary for the last two years would have been $67,000 and $70,000, respectively.

(b)

The present value of five years’ future salary. You assume the salary will be $73,000 per year.

(c) $245,000 for pain and suffering.
(d)

$40,000 for court costs.

Assume the salary payments are equal amounts paid at the end of each month.

If the interest rate you choose is an EAR of 8 percent, what is the size of the settlement?

In: Finance

TOM, Inc. produces and sells two products, L and V. Revenue and cost information for the...

TOM, Inc. produces and sells two products, L and V.
Revenue and cost information for the two products from last
month appear below:

Product L Product V
selling price per unit ........... $15.00 $12.00
variable costs per unit .......... $ 8.00 $ 7.00

For the coming month, Betty would like to use linear programming
in order to maximize monthly profits.

Each month Betty has 80,000 direct labor hours available and 60,000
machine hours available. Product L requires 5 direct labor hours for
each unit and 2 machine hours for each unit. Product V requires 4
direct labor hours for each unit and 8 machine hours for each unit.

Calculate the number of units of Product L that should be produced
in order to maximize net income.

In: Accounting

You are serving on a jury. A plaintiff is suing the city for injuries sustained after...

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) The present value of two years’ back pay. The plaintiff’s annual salary for the last two years would have been $36,000 and $39,000, respectively. (b) The present value of five years’ future salary. You assume the salary will be $43,000 per year. (c) $100,000 for pain and suffering. (d) $15,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month. If the interest rate you choose is an EAR of 8 percent, what is the size of the settlement?

In: Finance

You are serving on a jury. A plaintiff is suing the city for injuries sustained after...

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street-sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following:

(a)

The present value of two years’ back pay. The plaintiff’s annual salary for the last two years would have been $67,000 and $70,000, respectively.

(b)

The present value of five years’ future salary. You assume the salary will be $73,000 per year.

(c) $245,000 for pain and suffering.
(d)

$40,000 for court costs.

Assume the salary payments are equal amounts paid at the end of each month.

If the interest rate you choose is an EAR of 8 percent, what is the size of the settlement?

In: Finance

The current riskfree rate is 4% and the expected rate of return on the market portfolio...

The current riskfree rate is 4% and the expected rate of return on the market portfolio is 10%. The Brandywine Corporation has two divisions of equal market value. The debt to equity ratio (D/E) is 3/7. The company’s debt can be assumed to present no risk of default. For the last few years, the Brandy division has been using a discount rate of 12% in capital budgeting decisions and the Wine division a discount rate of 10%. You have been asked by their managers to report on whether these discount rates are properly adjusted for the risk of the projects in the two divisions.
(i) What are the betas of typical projects implicit in the discount rates used by the two divisions?
(ii) You estimate that the equity beta of Brandywine is 1.6. Is this consistent with the equity beta implicit in the discount rates used by the two divisions?
(iii) You estimate that the stock beta of the Korbell Brandy Corp. is 1.8. This company is purely in the brandy business, its debt to equity ratio is 2/3 and its debt beta is 0.2. Based on this information (and on your estimate, from section (b), of Brandywine’s equity beta), what discount rate would you recommend for projects in the Brandy and in the Wine divisions of Brandywine?

In: Finance