HW 5 Answers

HW 5 Answers - _ BUSI 410 - Homework #5 Answers Problem 1:...

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_____________________________________________________________________________________________ BUSI 410 - Homework #5 Answers Problem 1: Case 9-3: Starbucks in China , p. 272. a) The model in standard format is: Est. SB Revenue t ($B) = -0.166 + 0.952 b C t-3 (K$) + 1.643 a SB Revenue t-3 ($B) (0.207) (0.468) (0.109) R Square = 99.7% a a Significant at 0.01 b Significant at 0.1 where: SB Revenue t = Starbucks Corp. Revenue in year t ($ billions) C t = China GDP per capita in year t ($ thousands) b) The coefficients can be interpreted as follows: For each $1000 increase in Chinese GDP per capita, Starbucks revenues increase by $952 million three years later. For each $1 billion increase in Starbucks revenue three years ago, this year’s revenue increases by $1.643 billion. c) 99.7% of the variation in this year’s Starbucks revenue can be explained by per capita Chinese GDP and Starbucks revenue from three years ago. This percentage is significantly greater than zero. d) The 95% margin of error for forecasts made with this model is $288 million.
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This document was uploaded on 11/04/2011 for the course BUSI 410 at UNC.

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HW 5 Answers - _ BUSI 410 - Homework #5 Answers Problem 1:...

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