Assumptions for Forecasting Model
Income Statement
Sales
Cost of Sales
Selling, General & Admn. Expenses
Depreciation
Other Net (Income)/Expenses
Interest Income
Interest Expense
Income Taxes
Balance
FINA 6305 Section 8QA: Managerial Finance
Fall, 2017
Term Project
Instructions:
Enjoy the team work (three students each team) in this project! This project covers 20%
of your final grade, with chanc
Historical Income Statements and Balance Sheets for Vitex Corp.
Income Statement ($ Million)
Sales
Cost of Sales
Gross Operating Income
1999
$1,234.9
$679.1
$555.8
Year Ending Dec. 31,
2000
2001
$1,25
Section I
Directions for questions 1 to 35: Read the given passages and answer the questions that follow.
Passage 1
In many ways, the sleek, four-story building that houses Nike Inc.s Innovation Kitch
Section II
Directions for questions 41 to 80: Read the given passages and answer the questions that follow,
choosing the most appropriate options.
Passage 1
Some of ACT UPs most powerful actions were
Mock CAT 6
Answers and Explanations
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
a
d
a
c
b
b
a
c
c
c
d
b
b
a
c
a
d
2
12
22
32
42
52
62
72
82
92
102
112
122
132
142
152
162
d
a
c
b
b
d
c
b
Section I
Directions for questions 1 to 5: Each question has a main statement followed by four statements.
Choose the ordered pair of statements where the first statement implies the second and the tw
Section IV
Direction for questions 126 to 128: Study the chart given below and then answer the questions that
follow.
The chart gives the number of 3 different types of articles sold during the differ
Mock CAT 8
Answers and Explanations
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
c
b
b
b
b
a
c
b
b
b
a
a
b
b
b
b
c
2
12
22
32
42
52
62
72
82
92
102
112
122
132
142
152
162
d
c
b
c
d
d
b
b
Section III
Directions for questions 111 to 115: The following table provide information about the break-up of number
of employees of BOC Ltd. in various categories as of 31st March, 2004.
Hum a n Re
Section III
81.
If f(g(x)= g(f(x) = h(x), which of the following is true?
a. If f(x)= x + 2 then g(x) cant be x 10.
b. If f(x) = g(x) then h(x) = [f(x)]2.
c. f(h(x) = h(f(x).
d. None of these
Directio
Section II
Directions for questions 56 and 57: Answer the questions based on the following information.
Each of the letters of the alphanumetic addition EAT + THAT = APPLE are distictly different. The
t TEST OF A HYPOTHESIS RELATING TO A REGRESSION COEFFICIENT
s.d. of b2 known
discrepancy between
hypothetical value and sample
estimate, in terms of s.d.:
b2 20
z
s.d.
5% significance test:
reject H0:
TYPE II ERROR AND THE POWER OF A TEST
A Type I error occurs when the null hypothesis is rejected when it is in fact true. A Type II
error occurs when the null hypothesis is not rejected when it is in
TYPES OF REGRESSION MODEL AND ASSUMPTIONS FOR MODEL A
TYPES OF DATA
Cross-sectional:
Observations on individuals, households, enterprises,
countries, etc at one moment in time (Chapters 110,
Models A
SIMPLE REGRESSION MODEL
Y
Y 1 2 X
1
X1
X2
X3
X4
X
Suppose that a variable Y is a linear function of another variable X, with unknown
parameters 1 and 2 that we wish to estimate.
1
SIMPLE REGRESSION MO
TESTING A HYPOTHESIS RELATING TO A REGRESSION COEFFICIENT
A random variable X is distributed with unknown population mean and
variance 2. The null and alternative hypotheses are
H1: 0.
H0: = 0,
To tes
GOODNESS OF FIT
Four useful results:
e 0
Y Y
X e
i i
0
Y e
i i
0
This sequence explains measures of goodness of fit in regression analysis. It is
convenient to start by demonstrating four useful resu
F TEST OF GOODNESS OF FIT
2
2
2
(
Y
Y
)
(
Y
Y
)
e
TSS ESS RSS
In an earlier sequence it was demonstrated that the sum of the squares of the actual values
of Y (TSS: total sum of squares) could be deco
t TEST OF A HYPOTHESIS RELATING TO A POPULATION MEAN
s.d. of X known
discrepancy between hypothetical
value and sample estimate, in terms
of s.d.:
z
X 0
s.d.
s.d. of X not known
discrepancy between hy
PRECISION OF THE REGRESSION COEFFICIENTS
Simple regression model:
Y = 1 + 2X + u
probability density
function of b2
2
b2
We have seen that the regression coefficients b1 and b2 are random variables. T
CONFIDENCE INTERVALS
probability density function of X
conditional on = 0 being true
null hypothesis
H0: = 0
2.5%
01.96sd 0sd
2.5%
0
0+sd 0+1.96sd
In the sequence on hypothesis testing, we started w
9- 1
Estimation and Confidence
Intervals
ONE
Define a what is meant by a point estimate.
TWO
Define the term level of level of confidence.
THREE
Construct a confidence interval for the population mean
1) According to the article, what is a personal beta? (4 points)
Every individual has a human capital which can be measured in their future
earnings. Personal beta is the sensitivity of an individuals
Starbucks Total Assets decreased 6.63% in 2014 and it has increased 15.75% in 2015. Decrease in
assets in 2014 was mainly because of the 2.8 billion litigation charge from 2013.
The company has financ
Question a: Do any of the parties have any insurable interest in the building at that time of loss.
Answer: Jeff has an insurable interest because he is the person who is getting continuous benefit
fr
a. Sonja neglects to pay the second yearly premium due on January 1. She bites the dust 15
days after the fact. With regards to the premium which is the normal life coverage, the
recipient will get th
a. 5 Year Renewable and convertible Term Insurance:
It gives most extreme protection assurance for your premium dollar.
i.
Responding to ones security needs: As conditions change, you may need to
ampl