Chooseone of the forecastingmethods and explain the rationalebehindusing it in reallife.
I would choose to use the exponential smoothing forecast method. Exponential smoothing method is an average method that reacts more strongly to recent changes in demand than to more distant past data...
"Forecasting" Please respond to the following:
* Chooseone of the forecastingmethods and explain the rationalebehindusing it in real-life.
As the book states on page 682, “A variety of forecastingmethods exist, and their applicability is dependent on the time frame of the forecast( i.e...
use several approaches, and a third may combine both quantitative and subjective techniques. Whatever tool works best for a firm is the one that should be used. Activity – Rationale of Forecasting o o Chooseone of the forecastingmethods and explain the rationalebehindusing it in real-life...
analysis, and Monte Carlo simulation
can be used to assess the stand-alone risk of a capital project;
e: explain and calculate the discount rate, based on market risk methods, to use in
valuing a capital project;
f: describe types of real options and evaluate a capital project usingreal...
corporate financial decision-making and their impact in reallife financial decisions. Using normative economic theory as the basic philosophical foundation, students are introduced into the three essential parts of corporate finance, namely: the financing decisions the dividend policy, and the investment...
would you use Chebyshev’s theorem and the empirical rule in business? How are they calculated? Provide onereal-life example that requires Chebyshev’s theorem and one that requires the empirical rule.
• Why is using Bayes’ theorem important to help answer business-related questions? What...
Recommendation (which one of the alternatives do you recommend?):
Rationale (what is the logic behind your decision? How is it related to each of your selection criteria? What are the strengths/weaknesses of your choice? The clearest way to...
Cash & Cash Equivalents [USD bn] Using CAGR
• GAGR line sets the trend (up or down)
2.5 +27% 2.0
• It‟s possible to use CAGR for forecasting, however, reasonable back-up and thorough understanding of market is required
1.2 0.8 1.0
will be examined; and to research question d), the superiority of the competing forecastingmethods in the classification model will be examined.
The last component is the criteria for interpreting the findings. The experiment which adopts competing forecastingmethods is interpreted using an...
first two years total $8,000.
(11,000 − 8,000)/4,000 ’ 0.75, so payback for Microsurgery is 2.75 years.
a. Explain the rationalebehind the payback method.
The payback simply computes the break-even point for a project in terms of time rather than units or dollars. It is the...
a stock is overvalued,
fairly valued, or undervalued based on
a free cash flow valuation model
distinguish between the method of
comparables and the method based on
forecasted fundamentals as approaches
to using price multiples in valuation,
and explain economic rationales for
operational and financial cash flows.
3. Explain the equity DCF-method used in valuing banks?
See page 769-770
4. In using the equity DCF-method the key ratio ROIC is replaced by another key-ratio- which?
Return on Equity
5. Explain the pitfalls of equity DCF valuation relating to the...
weakened to the extent that a foreign country’s goods are no more attractive than the home country’s goods. Inflation differentials are offset by exchange rate changes.
3. Explain how you could determine whether PPP exists.
ANSWER: Onemethod is to choose two countries and compare the...
• Determine appropriate quality management philosophies to use within business processes.
• Assess methods to improve operating efficiency.
• Determine existing capacity in an organization.
• Compare the uses of forecastingmethods.
• Explain how to forecast demand...
occurs higher which in turn increase the mean square error of the model.
Mean square error of the model = 1.28
For better forecastingusing these model , one has to use more no of samples, to get the
smoother output. But the limitation in reallife is, the inflation rate always reflects in...
tests? How is it possible to use 1
quantitative data as evidential support for qualitative theories? How do psychologists generalize from their data that are collected in an artificial setting to real-life phenomena? What is the rationale of experimentation in psychological research? How can...
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More complex time series forecastingmethodsForecasting routes Concluding comments Review questions 4 Forecasting cash ﬂows: qualitative or judgemental techniques Study objectives Obtaining information from individuals Using...
testing purposes. It will rent the lab space, but will need to purchase $7.5 million of new equipment. The equipment will be depreciated using the straight-line method over a five-year life. The lab will be operational at the end of one year. At that time, HomeNet will be ready to ship. Linksys expects to...
flow forecasts; scatter graphs; linear regression; time series methods; forecasting and price movement; using indices, limitations of index numbers; forecasting problems and limitations; place of qualitative data; recommendations
The London Academy for Higher Education: Extended Diploma in...
variable which enables the value to be converted into one currency. According to theory, this should be done either using the spot rate method or the forward rate method. The empirical findings showed no indications of any special method that was used on this aspect. However, there were five models...