Unformatted text preview: ndix A: Reference Information Statistics
(Formulas apply to both x and y.)
Standard deviation with n weighting ( x): ( ∑ x)2 1/ 2 ∑ x2 − n n Standard deviation with n 1 weighting (s x): ( ∑ x)2 1/ 2 ∑ x2 − n n −1 Mean: x = ( ∑ x)
n Linear Regression
Formulas apply to all regression models using transformed data.
b= a=
r= n( ∑ xy ) − ( ∑ y )( ∑ x )
n( ∑ x 2) − ( ∑ x ) 2 (∑ y − b ∑ x)
n
bσx
σy Interest Rate Conversions
EFF = 100 × (e C / Y where: x = .01 × ln ( x + 1) − 1) NOM P CàY NOM = 100 × C / Y × (e1 ÷ C / Y where: x = .01 × ln( x + 1) − 1) EFF Appendix A: Reference Information 77 Percentage of Change %CH # PD
NEW = OLD 1 + 100 where: OLD
NEW
%CH
#PD = old value
= new value
= percent change
= number of periods Profit Margin
Gross Profit Margin = Selling Price − Cost
× 100
Selling Price Breakeven
PFT = P Q − ( FC + VC Q) where: PFT
P
FC
VC
Q = profit
= price
= fixed cost
= variable cost
= quantity Days between Dates
With the Date worksheet, you can enter or compute a date within the range
January 1, 1950, through December 31, 2049. 78 Appendix A: Reference Information Actual/actual daycount method (assumes actual number of days per
month and actual number of days per year):
DBD (days between dates) = Number of days II Number of days I
Number of Days I
= (Y1 YB) 365
+ (number of days MB to M1)
+ DT1
(Y 1 − YB)
+
4
Number of Days II= (Y2 YB) 365
+ (number of days MB to M2)
+ DT2
(Y 2 − YB)
+
4
where: M1
DT1
Y1
M2
DT2
Y2
MB
DB
YB = month of first date
= day of first date
= year of first date
= month of second date
= day of second date
= year of second date
= base month (January)
= base day (1)
= base year (first year after leap year) 30/360 daycount method (assumes 30 days per month and 360 days
per year):
DBD = (Y 2 − Y 1) × 360 + ( M 2 − M 1) × 30 + ( DT 2 − DT 1) where: M1
DT1
Y1
M2
DT2
Y2 = month of first date
= day of first date
= year of first date
= month of second date
= day of second date
= year of second date Note: If DT1 is 31, change DT1 to 30. If DT2 is 31 and DT1 is 30 or 31,
change DT2 to 30; otherwise, leave it at 31.
Source for 30/360 daycount method formula:
Lynch, John J., Jr., and Jan H. Mayle. Standard Securities Calculation
Methods. New York: Securities Industry Association, 1986. Appendix A: Reference Informatio...
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This homework help was uploaded on 04/03/2014 for the course ECON 203 taught by Professor Petry during the Summer '09 term at University of Illinois, Urbana Champaign.
 Summer '09
 PETRY

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