Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$33,790 1 8,210 2 9,890 3 14,120 4 1
1 answer:
Answer: 20.15%
Explanation:
The IRR is the discount rate that makes brings the Net Present Value to zero.
It can be solved for by various means including using Excel as shown in the attached file.
Year 0 -33790
Year 1 8,210
Year 2 9,890
Year 3 14,120
Year 4 15,930
Year 5 10,820
= IRR (-33,790 , 8,210 , 9,890 , 14,120 , 15,930 , 10,820 )
= 20.15%
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Answer:
The percentage of variation esplained by the model is given by the determination coefficient, on this case:
And we have 87.2% of the variation explained by the linear model given.
And we have 12.031 doctors per 10000 residents.
Explanation:
Assuming the following dataset:
x y
8.6 9.6
9.3 18.5
10.1 20.9
8.0 10.2
8.3 11.4
8.7 13.1
Assuming this question: "The data has a correlation coefficient of r = 0.934. Calculate the regression line for this data. What percentage ofvariation is explained by the regression line? Predict the number of doctors per 10,000 residents in a town with a per capita income of $8500."
We want a linear model like this:
Where m represent the slope and b the intercept for the linear model. And we cna find the slope and b with the following formulas:
And from the dataset we have the following values:
And replacing into the equation for m we got:
And the intercept:
And then the linear model is given by:
We can find the estimation replacing x = 8.5 into the linear model and we got:
And we have 12.031 doctors per 10000 residents.
The percentage of variation esplained by the model is given by the determination coefficient, on this case:
And we have 87.2% of the variation explained by the linear model given.