Any company’s assets are either financed by its debt or by its equity. The Weighted Average Cost of Capital is the average costs of these sources of financing‚ each of which is weighted by its respective use in the given situation. By taking the weighted average‚ we can see how much interest the company has to pay for every dollar it finances. Basically‚ the WACC is the minimum required return that the company must earn to satisfy its creditors‚ owners‚ and other providers of capital‚ or they will
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|623 | Use simple linear regression to forecast the annual number of births for each of the next three years. Determine the coefficient of determination for the data and interpret its meaning. Moving Averages IPC’s Plant estimates weekly demand for its many materials held in inventory. One such part‚ the CTR 5922‚ is being studied. The most recent 12 weeks of demand for the CTR 5922 are : |Week |Demand in units |Week
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be falling. C) can be less than zero. D) never equals average product. Ans: C Exhibit 3 4. (Exhibit 3: Short-Run Costs) Curve A is the _______ cost curve. A) average total B) average variable C) marginal D) total Ans: C Exhibit 4 5. (Exhibit 4: A Firm ’s Cost Curves) The curve labeled V represents the firm ’s _______ curve. A) total cost B) average total cost C) marginal cost D) average variable cost Exhibit 5 | | 6. | (Exhibit 5:
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answer on Answer Sheet provided Question 1 If Output Average Total Cost Total Fixed Cost Marginal Cost = 400 units = $70 = $12000 = $90 then (a) $20 (b) $40 (c) $50 Average Variable Cost equals: (d) $160 Question 2 In an imperfectly competitive market‚ in which a firm has some market power: (a) The demand curve faced by a typical firm is perfectly elastic at the current market price (b) Marginal revenue is greater than average revenue at all levels of production. (c) The demand curve
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| a. Use a 2-period moving average to forecast the population of the United States in 2003. [pic] b. Use a 3-period moving average to forecast the population of the United States in 2003 c. Which averaging period provides a better historical fit based on the MAD criterion? [pic] 2. Refer to the data provided in problem 1. Use a 3-period weighted moving average to forecast the population of the United States in 2003. Use
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We already know that following are the important cost concepts related to the production process of a firm: • Fixed Cost • Varibale Cost • Average Cost • Marginal Cost please refer to following page Introduction to Cost Concepts to understand various cost concepts in detail. Here we will briefly state again the meaning of above stated cost concepts for better understanding of the module on short run cost analysis. Fixed Cost is that cost which does not change (that is either goes up or
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Chapter 04 Demand 10. The long-run price elasticity of demand for a product is generally _________ the short-run elasticity for the same product. A. lower than B. equal to C. higher than D. not comparable to 11. Assume the demand function for skin care products is given by Q = 1‚000 – 20 P + 5I. If P=$25 and I=$1‚000 currently‚ then: A. skin care products are a normal good. B. the elasticity of demand is equal to 11. C. skin care products are inferior. D. The price is too high
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Case study: Forecasting at Hard Rock Café 1. Hard Rock uses a 3- year weighted moving average to evaluate to evaluate managers and set bonuses and determine the café sales. A moving average is also used in which they applied 20% to sales 2 years ago. Using multiple regression‚ managers can compute the impact on demand of other menu items if the price of one item is changed. The three other areas which we think Hard Rock could use forecasting models are: • Computerized Scheduling
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refrigerator or television set. Question 3. Analyse the method by which a firm can allocate the given advertising budget between different media of advertisement. Question 4. What kind of relationship would you postulate between short-run and long-run average cost curves when these are not Ushaped as suggested by the modern theories? Question 5. How do demand forecasting methods for new products vary from those for established products? Assignment - B Question 1. What are the different methods of
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Sheet “Population of Arizona” in HW 2 perform the following functions in Excel and answer the following questions. a. Use a 2 period moving average to forecast the Population of Arizona for the year 2010 – do the calculations from 1929-2010. (5 Points) b. Calculate the Mean Absolute Deviation for this Data Set (5 Points) c. Use a 3 period weighted moving average (previous Year 60%‚ 2 years Previous 30% and 3 years previous 10%) to forecast the Population of Arizona for the year 2010 – do the calculations
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