![Q.5: (12 marks) [CLO 1, 2, 3] Khalid has established a large trading company to import mobile phones from Korea and sell in the MENA region. His sales data shows that there is a positive relationship between sales revenue and advertisement expenditure. He wants to forecast for revenues if the advertisement expenses are increased from current years AED 12 million to AED 15 million. There are number of ways to forecast such as moving average method, and ftting a curve by using regression equation. The company hires a researcher who collects the data from company records on sales and advertisement expenses for previous years. The raw data is given in the table below. Annual Sales Annual Advertisement Year (AED Million) 2012 2013 2014 Expense (AED Million) 21 23 24 7 8](http://img.homeworklib.com/questions/93710a20-7159-11ea-868f-51f12c161f75.png?x-oss-process=image/resize,w_560)
Homework Answers
as per company policies i am answering 4 parts only.
| x | y | x^2 | y^2 | xy |
| 5 | 21 | 25 | 441 | 105 |
| 7 | 23 | 49 | 529 | 161 |
| 8 | 24 | 64 | 576 | 192 |
| 8 | 23 | 64 | 529 | 184 |
| 9 | 22 | 81 | 484 | 198 |
| 12 | 25 | 144 | 625 | 300 |
| 13 | 27 | 169 | 729 | 351 |
| sum x | sum y | sum x^2 | sum y^2 | sum xy | n |
| 62 | 165 | 596 | 3913 | 1491 | 7 |
b)
excel output:
c)
scatter plot given below
d)
slope, b1=
{n*sum(xy) - sum(x)*sum(y)} / {n*sum(x^2) - [sum(x)]^2
}
{7*1491 - 62*165} / {7*596 - [62]^2 }
0.6311
intercept, bo=
{sum(y)*sum(x^2) - sum(x)*sum(xy)} / {n*sum(X^2) -
[sum(X)]^2}
{165*596 - 62*1491} / {7*596 - [62]^2}
18.0
regression equation:
y = bo + b1*x
y = 17.9817 + 0.6311*x
e)
when x= 18
yhat = 17.9817+0.6311*18
Yhat = 29
f)
corr coef, r =
(n*sum(XY) - sum(X)*sum(Y)) / ( sqrt(n*sum(x^2)-[sum(x)]^2) *
sqrt(n*sum(y^2)-[sum(y)]^2) )
(7*1491-62*165) / ( sqrt(7*596-[62]^2) * sqrt(7*3913-[165]^2)
)
0.887113891
coef of determination, R^2
0.887113890631588^2
0.787
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Q.5: (12 marks) [CLO 1, 2, 3] Khalid has established a large trading company to import...
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city code
%drivers21
fatal accidents/1000
1
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1.309
2
5
0
3
12
2.539
4
9
2.003
5
11
2.034
6
14
4.08
7
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2.639
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9
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6
0
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17
3.769
15
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2.639
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1.449
17
12
3.121
18
10
2.616
19
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12
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bottom question multiple choice options:
1. a. $18 b. $30 c. $12 d. $24
2. a. $9.13 b.$14.18 c. $10.63 d. $15.75
3. a.$20.44 b. $17.37 c. $11.53 d. $13.03
4. a.$5,276,250 b. $14,400,000 c. $3,750,000 d.
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5. a. $$19,363,125 b. $6,693,281 c. $4,687,500 d.
$16,668,281
6. correct/incorrect
7. all/all but one
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4.
5.
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Q.5: (12 marks) [CLO 1, 2,3] Khalid has established a large trading company to import mobile phones from Korea and sell in the MENA region. His sales data shows that there is a positive relationship between sales revenue and advertisement expenditure. He wants to forecast for revenues if the advertisement expenses are increased from current year's AED 12 million to AED 15 million. There are number of ways to forecast such as moving average method, and fitting a curve by...
1) A company has recorded the demand for a new type of tire for the last five months. Month 1 2 3 4 5 Demand ('00s) 14 17 19 23 24 a) Use a two month moving average to generate a forecast for demand in month 6. b) Apply exponential smoothing with a smoothing constant of 0.9 to generate a forecast for demand for demand in month 6. c) Which of these two forecasts do you prefer and why? 2)...
city code
%drivers21
fatal accidents/1000
1
12
1.309
2
5
0
3
12
2.539
4
9
2.003
5
11
2.034
6
14
4.08
7
13
2.639
8
9
0.124
9
6
0
10
10
1.145
11
13
2.719
12
18
3.128
13
10
1.676
14
17
3.769
15
14
2.639
16
13
1.449
17
12
3.121
18
10
2.616
19
9
0.788
20
14
2.631
21
10
1.887
22
12
1
23
9
0.652
24
12
1.209
25
15
0.775...
Problem 12:23 Comprehensive Problem (LO12-1, LO12-2, L012-3, LO12-5, LO12-6] ou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five- year period annual pay raises are determined by his division's return on investment (ROI), which has exceeded 20% each of the last three years he has computed the cost and revenue estimates for each product as follows: Product 3 $ 460,000 Initial investment cost of equat (tero salvage...
bottom question multiple choice options:
1. a. $18 b. $30 c. $12 d. $24
2. a. $9.13 b.$14.18 c. $10.63 d. $15.75
3. a.$20.44 b. $17.37 c. $11.53 d. $13.03
4. a.$5,276,250 b. $14,400,000 c. $3,750,000 d.
$3,858,750
5. a. $$19,363,125 b. $6,693,281 c. $4,687,500 d.
$16,668,281
6. correct/incorrect
7. all/all but one
2. Income statement The income statement, also known as the profit and loss (P&l) statoment, provides a snapshot of the financial performance of a company during a...
1. Exercise 5.1 The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales, S, vary jointly with disposable personal income, Y, and the population between ages 15 and 40,Z, and inversely with the price of the snowmobiles, P. Based on past data, the best estimate of this relationship is: where k has been estimated (from past data) to equal 100 If Y $13,000, Z- $1,200, and P...
1.
2.
3.
4.
5.
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid in capital in excess of par-Common stock Retained earnings Year 2 $600,000 60,000 900,000 125,000 350,000 100,000...
11) Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies forcash $5,000. What effect would this transaction have on the accounting equation? Assets, $5,000 increase, equity, $5,000 increase. Assets, $5,000 increase, equity, $5,000 decrease. Liabilities, $5.000 increase, equity, $5.000 decrease. Assets, $5,000 decrease, equity, $5,000 decrease. Assets, no effect:liabilites, no effect 12) Unearned revenues are revenues that have been earned and received revenues that have been earned but not yet colected liabilites created...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
1) Although a proprietorship is not a separate legal entity, a partnership is True False 2) Purchasing supplies on credit increases assets while decreasing liabilities. True False 3)On October 15, Gallery Comp. received $12,500 as a down payment on a consuting contract. The amount was credited to Unearned Consulting Revenue By October 31, 10% of the contract was completed. Gallery Corp. needs to prepare an adjusting entry for $1.250. True False 4) Asset, liability and revenue accounts are not closed...
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