Basic Statistics The stock market returns and Teldar's stock returns comprise mean stock return is The standard deviation of the market's returns is Regression Results Teldar's Return = + Market Return x sample The correlation coefficient between the two variables is data. The market's mean return is There is paired X and Y variable data entered. A regression model of stock returns would make Teldar's returns the dependent variable and the market returns the independent variable. The calculator runs a regression model of the Y variable on the X variable. The equation of the regression characteristic line is: while the standard deviation of Teldar's returns is while Teldar's

Final Exam Practice Problems

Question 1(b)

Suppose you are the marketing manager of a firm, and you plan to introduce a new product to the market. You have to estimate the first year net profit, which depends on several variables • Sales volume (in units) • Price per unit • Unit cost . Fixed costs Your net profit is net profit = sales volume x (price per unit-unit cost) - fixed cost The fixed cost is $120, 000, but other factors have some uncertainty. Based on your market research, there are equal chance that the market will be slow, ok, or hot. • Slow market the sales volume follows Poisson distribution with mean 50,000 units product, and the average price per unit is $11.00 ● Ok market the sales volume follows Poisson distribution with mean 75,000 units product, the average price per unit is $10.00 Hot market: the sales volume follows Poisson distribution with mean 100,000 units product, but the competition is severe so you expect the average price per unit is just $8.00 No matter what the market type is, your average unit…