Even though insignificant explanatory variables can raise the adjusted R 2 of a demand function, one should not interpret their effects on the regression when testing marketing hypotheses about the determinants of demand.
What is meant by demand function?
A demand function is described by the equation p=f(x), p = f (x), where p represents the unit price and x represents the quantity in question. A demand function is typically characterized as a decreasing function of x, meaning that it gets smaller as x grows.
What is meant by regression in statistics?
Regression analysis is a statistical method for connecting a dependent variable to one or more independent (explanatory) variables. A regression model can demonstrate whether variations in the dependent variable are related to variations in one or more explanatory variables.
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Answer:
Explanation:
Put Delta = call delta - 1 = 0.582 - 1 = -0.418
No of Options = (-11.2 million / (-0.418 × 1402)) × 1.32 = 25,227 options
No of Contracts = 25,227 / 100 = 252 contracts
Answer:
B. 29.2%, 12.5%, 10.0%
Explanation:
Gross Profit = Sales - Cost of goods sold / Sales
Gross Profit = $1,200 - $850 / $1,200
Gross Profit = $350 / $1,200
Gross Profit = 0.2917
Gross Profit = 29.17%
Operating profit = Sales - Cost of goods sold - Operating Expenses / Sales
Operating profit = $1,200 - $850 - $200 / $1,200
Operating profit = $150 / $1,200
Operating profit = 0.125
Operating profit = 12.5%
Net profit margin = Sales - Cost of goods sold - Income Taxes / Sales
Net profit margin= $1,200 - $850 - $200 - $30 / $1,200
Net profit margin $120 / $1,200
Net profit margin= 0.1
Net profit margin= 10%
The future amount of the current investment/credit with interest that is compounded annually can be calculated through the equation,
F = P x (1 + r)^n
where F is the future amount, P is the principal, r is the decimal equivalent of the given rate, and n is the number of years.
Substituting the known values,
F = ($125,000) x (1 + 0.06)^3 = $148,877
The interest is therefore,
I = $148,877 - $125,000 = $23,877
