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Weeks 6 & 7 Assignment 6: Regression Forecasting

Course Objectives:

CO7: Investigate cause-and-effect relationships utilizing regression analysis

Prompt:

This week and next, your studies focus on using statistical regression to forecast future demand. Begin your studies in the Content section of the classroom by completing the reading and viewing assignments. As was the case last week, do not try to complete this homework assignment without understanding the concepts involved with forecasting using statistical regression. Once you have a good understanding of how regression works, download the attached Excel Template onto your computer. You will use this template for your assignment during the next two weeks (Weeks 6 and 7). Begin by opening the Excel File and read through the Scenario at the top of the page, then notice there are tabs at the bottom of the workbook that constitute your homework assignment. There are three different Task-groups for you to work on over the next two weeks. Next, take a look at each section in the Excel book and scroll down through the spreadsheet, you will notice in the far left column, there are several tasks for you to complete on each tab. Pace yourself and get some of the assignment done in the first week; it can be dangerous to leave all of this homework for week 7.

Next, hyperlinked directly below are several YouTube videos that will aid you in completing the assignment tasks. They are all short (under 10 minutes), so watch them all in succession before you start your homework. Then, as you start each Tab in the Excel Workbook, keep a copy of the appropriate video handy, each assignment almost exactly mirrors these videos; albeit with different scenarios.

These are youtube videos that explain how to complete the problems. They are listed below!

Using Excel to calculate a correlation coefficient || interpret relationship between variables (5:21 Minutes)

(Linear) Regression Equation Excel 2016 (4:35 Minutes)

Multiple Linear Regression Equation using Excel 2016 (7:15 Minutes)

Regression with a Dummy Variable using Excel (7:23 Minutes)

https://youtube.com/watch?v=w9LXjZfcgOo%3Fwmode%3Dopaque%26rel%3D0

https://youtube.com/watch?v=Cltt47Ah3Q4%3Fwmode%3Dopaque%26rel%3D0

https://youtube.com/watch?v=nFj7nAeGlLk%3Fwmode%3Dopaque%26rel%3D0

https://youtube.com/watch?v=sGlsdHD-lcA%3Fwmode%3Dopaque%26rel%3D0

# Category: Financial Management

## Hide Assignment Information Instructions Weeks 6 & 7 Assignment 6: Regression Fo

Hide Assignment Information

Instructions

Weeks 6 & 7 Assignment 6: Regression Forecasting

Course Objectives:

CO7: Investigate cause-and-effect relationships utilizing regression analysis

Prompt:

This week and next, your studies focus on using statistical regression to forecast future demand. Begin your studies in the Content section of the classroom by completing the reading and viewing assignments. As was the case last week, do not try to complete this homework assignment without understanding the concepts involved with forecasting using statistical regression. Once you have a good understanding of how regression works, download the attached Excel Template onto your computer. You will use this template for your assignment during the next two weeks (Weeks 6 and 7). Begin by opening the Excel File and read through the Scenario at the top of the page, then notice there are tabs at the bottom of the workbook that constitute your homework assignment. There are three different Task-groups for you to work on over the next two weeks. Next, take a look at each section in the Excel book and scroll down through the spreadsheet, you will notice in the far left column, there are several tasks for you to complete on each tab. Pace yourself and get some of the assignment done in the first week; it can be dangerous to leave all of this homework for week 7.

Next, hyperlinked directly below are several YouTube videos that will aid you in completing the assignment tasks. They are all short (under 10 minutes), so watch them all in succession before you start your homework. Then, as you start each Tab in the Excel Workbook, keep a copy of the appropriate video handy, each assignment almost exactly mirrors these videos; albeit with different scenarios.

These are youtube videos that explain how to complete the problems. They are listed below!

Using Excel to calculate a correlation coefficient || interpret relationship between variables (5:21 Minutes)

(Linear) Regression Equation Excel 2016 (4:35 Minutes)

Multiple Linear Regression Equation using Excel 2016 (7:15 Minutes)

Regression with a Dummy Variable using Excel (7:23 Minutes)

https://youtube.com/watch?v=w9LXjZfcgOo%3Fwmode%3Dopaque%26rel%3D0

https://youtube.com/watch?v=Cltt47Ah3Q4%3Fwmode%3Dopaque%26rel%3D0

https://youtube.com/watch?v=nFj7nAeGlLk%3Fwmode%3Dopaque%26rel%3D0

https://youtube.com/watch?v=sGlsdHD-lcA%3Fwmode%3Dopaque%26rel%3D0

## Hide Assignment Information Instructions Image result for researchWeek 5: Assign

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Instructions

Image result for researchWeek 5: Assignment 5: Time Series Data Forecasting

Course Objectives:

CO6: Utilize quantitative forecasting methods with time series data

Prompt:

This week is dedicated to Time-Series Forecasting techniques. Start in the Lessons section of the classroom by completing the reading and viewing assignments. Don’t even think about trying to complete this homework assignment without understanding the concepts involved in Forecasting Time-Series data. Once you have the concepts down in chapter 5, and have completed the Discussion forum, you are ready to start this assignment. Download the Excel Template attached to this assignment onto your computer, open it up, and read through the “Red Snapper Scenario” at the top of the page. All of this week’s assignments focuses on historical Red Snapper Catches for 2015 through 2018 (by Quarter) off the coast of Louisiana. The last four rows of the table are empty as 2019 is what you are going to forecast using the historical data for 2015 through 2018. As you scroll down through the Spreadsheet, you will notice in the far left column, there are five tasks for you to complete this week. Every one of these tasks is mirrored in the three YouTube videos below. Although this project is about Red Snapper Catches (your faithful designer’s favorite fish to catch and eat out of the southern bays of Louisiana) and the videos forecast Car sales, the process for forecasting the future year (in our case 2019) is identical.

YOU CAN REVIEW THESE VIDEOS TO COMPLETE THE ASSIGNMENT AND CHAPTER 5.

NAME OF YOUTUBE SERIES: Excel – Time Series Forecasting – Part 1 of 3

Part 1 https://www.youtube.com/watch?v=gHdYEZA50KE&t=1s

Part 2: http://www.youtube.com/watch?v=5C012e…

Part 3: http://www.youtube.com/watch?v=kcfiu-…

## Problem 2-10: The Talley Corporation had taxable operating income of $365,000 (i

Problem 2-10: The Talley Corporation had taxable operating income of $365,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $50,000, (2) dividends received of $15,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the taxable income? What is the tax expense? What is the after-tax income?

Problem 3-14: Start with the partial model in the ATTACHED FILE. Joshua & White (J&W) Technology’s financial statements are also shown here. Answer the following questions.

a. Has J&W’s liquidity position improved or worsened? Explain.

b. Has J&W’s ability to manage its assets improved or worsened? Explain.

c. How has J&W’s profitability changed during the last year?

d. Perform an extended DuPont analysis for J&W for 2018 and 2019. What do these results tell you? e. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities? f. Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization.

Mini Case Study: Assume that you are nearing graduation and have applied for a job with a local bank. The bank’s evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions.

B(1): What’s the future value of an initial $100 after 3 years if it is invested in an account paying 10% annual interest?

C: We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company’s sales are growing at a rate of 20% per year, how long will it take sales to double?

D: If you want an investment to double in 3 years, what interest rate must it earn?

F(1): What’s the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10%?

F(2): What’s the present value of the annuity?

F(3): What would the future and present values be if the annuity were an annuity due?

## Two paragraphs or a minimum of 300 words to each of the 4 responses with one ref

Two paragraphs or a minimum of 300 words to each of the 4 responses with one reference for each.

1. What is the rational for wealth maximization as a goal for a firm?

2. What are the key financial statements and why they are important?

3. What is the purpose of ratio analysis?

4. What is the concept of time value of money?

## Hide Assignment Information Instructions Image result for researchWeek 5: Assign

Hide Assignment Information

Instructions

Image result for researchWeek 5: Assignment 5: Time Series Data Forecasting

Course Objectives:

CO6: Utilize quantitative forecasting methods with time series data

Prompt:

This week is dedicated to Time-Series Forecasting techniques. Start in the Lessons section of the classroom by completing the reading and viewing assignments. Don’t even think about trying to complete this homework assignment without understanding the concepts involved in Forecasting Time-Series data. Once you have the concepts down in chapter 5, and have completed the Discussion forum, you are ready to start this assignment. Download the Excel Template attached to this assignment onto your computer, open it up, and read through the “Red Snapper Scenario” at the top of the page. All of this week’s assignments focuses on historical Red Snapper Catches for 2015 through 2018 (by Quarter) off the coast of Louisiana. The last four rows of the table are empty as 2019 is what you are going to forecast using the historical data for 2015 through 2018. As you scroll down through the Spreadsheet, you will notice in the far left column, there are five tasks for you to complete this week. Every one of these tasks is mirrored in the three YouTube videos below. Although this project is about Red Snapper Catches (your faithful designer’s favorite fish to catch and eat out of the southern bays of Louisiana) and the videos forecast Car sales, the process for forecasting the future year (in our case 2019) is identical.

YOU CAN REVIEW THESE VIDEOS TO COMPLETE THE ASSIGNMENT AND CHAPTER 5.

NAME OF YOUTUBE SERIES: Excel – Time Series Forecasting – Part 1 of 3

Part 1 https://www.youtube.com/watch?v=gHdYEZA50KE&t=1s

Part 2: http://www.youtube.com/watch?v=5C012e…

Part 3: http://www.youtube.com/watch?v=kcfiu-…

## Problem 2-10: The Talley Corporation had taxable operating income of $365,000 (i

Problem 2-10: The Talley Corporation had taxable operating income of $365,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $50,000, (2) dividends received of $15,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the taxable income? What is the tax expense? What is the after-tax income?

Problem 3-14: Start with the partial model in the ATTACHED FILE. Joshua & White (J&W) Technology’s financial statements are also shown here. Answer the following questions.

a. Has J&W’s liquidity position improved or worsened? Explain.

b. Has J&W’s ability to manage its assets improved or worsened? Explain.

c. How has J&W’s profitability changed during the last year?

d. Perform an extended DuPont analysis for J&W for 2018 and 2019. What do these results tell you? e. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities? f. Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization.

Mini Case Study: Assume that you are nearing graduation and have applied for a job with a local bank. The bank’s evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions.

B(1): What’s the future value of an initial $100 after 3 years if it is invested in an account paying 10% annual interest?

C: We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company’s sales are growing at a rate of 20% per year, how long will it take sales to double?

D: If you want an investment to double in 3 years, what interest rate must it earn?

F(1): What’s the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10%?

F(2): What’s the present value of the annuity?

F(3): What would the future and present values be if the annuity were an annuity due?

## Two paragraphs or a minimum of 300 words to each of the 4 responses with one ref

Two paragraphs or a minimum of 300 words to each of the 4 responses with one reference for each.

1. What is the rational for wealth maximization as a goal for a firm?

2. What are the key financial statements and why they are important?

3. What is the purpose of ratio analysis?

4. What is the concept of time value of money?

## Two questions about Performance Measurement and Incentive System. The second que

Two questions about Performance Measurement and Incentive System. The second question should be written from four aspects and focus on two aspects for detailed discussion. The word requirements are the first 900 words and the second 1500 words. The third page of PowerPoint is the reference given by the teacher. It is best to use all of them and find some on your own. The whole report needs at least 25 references. Look for cases in the textbook to supplement and explain with the marks in the photos

## This week you will use an excel spreadsheet to analyze forecasting performance.

This week you will use an excel spreadsheet to analyze forecasting performance. Your company produces and distributes two lines of Consumer External Hard Drives: 1 Terabyte drives (1 Tb) and 5 Terabyte Drives (5 Tb). The unit sales levels and forecasts for the last two previous years are in the table below. For this exercise, You have been asked to calculate the Forecast error, Forecast Percentage, Mean percentage Error (MPE) and Mean Absolute Percentage Error (MAPE) for (a) each type of terabyte (b) each year, and (c) for each two-year period. The concepts, equations, and examples for how to calculate these forecasting effectiveness are covered in your textbook on pages 107 – 114. Finally, for each set of problems you will provide insight into the sales trends, and forecasting effectiveness with a written summary of your findings.