Business Analytics (2nd Edition)
Business Analytics (2nd Edition)
2nd Edition
ISBN: 9780321997821
Author: James R. Evans
Publisher: PEARSON
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Chapter 5, Problem 47PE

A formula in financial analysis is: R e t u r n   o n   =   n e t   p r o f i t   m a r g i n   ×   t o t a l   a s s e t   t u r n o v e r   ×   e q u i t y   m u l t i p l i e r . Suppose that the equity multiplier is fixed at 4.0, but that the net profit margin is normally distributed with a mean of 3.8% and a standard deviation of 0.4%. and that the total asset turnover is normally distributed with a mean of 1.5 and a standard deviation of 0 2. Set up and conduct a sampling experiment to find the distribution of the return on equity Show your results as a histogram to help explain your analysis and conclusions. Use the empirical rules to predict the return on equity.

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The following data lists different investment amounts (X) and the amount of interest (Y): X5 Y 2.5 30 15 10 20 100 10 25 50 y = 9 - 1 x O y = 14 -1.0286 x O y = 0 + 0.5 x O y = 10 + 2 x O
The following data represents annual expenditure on a product (Y), annual income (X₁) and the price of the product (X₂). Y X₁1 X2 324.00 45,000.00 9.00 386.00 43,000.00 7.00 424.00 52,000.00 4.00 248.00 37,000.00 9.00 204.00 29,000.00 9.00 409.00 39,000.00 5.00 532.00 62,000.00 7.00 627.00 76,000.00 5.00 If a consumer earned $50,000 per year and the good cost $11, we would expect their yearly expenditure to be closest to Select one: O a. $329.90 O b. $332.30 O c. $337.22 O d. $334.86
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Business Analytics (2nd Edition)

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