{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

HW 5 Answers

# HW 5 Answers - BUSI 410 Homework#5 Answers Problem 1 Case...

This preview shows pages 1–2. Sign up to view the full content.

_____________________________________________________________________________________________ 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. e) The forecasted revenues and 95% prediction intervals for 2007, 2008, and 2009 are: For 2007: \$9.94 ± \$0.29 billion For 2008: \$11.93 ± \$0.29 billion For 2009: \$14.54 ± \$0.29 billion f) Chances look very good of Starbucks reaching \$13 billion by 2009.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

HW 5 Answers - BUSI 410 Homework#5 Answers Problem 1 Case...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online