What is the expected return on a portfolio that has $100 invested in stock 1 with an expected return of 18.0% and $45 invested i
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Answer:
(1)
(2) The variable cost per unit produced is $7.60.
(3) The coefficient of determination is 0.96 or 96%.
(4) The estimated total cost is $5,046.67.
Explanation:
A regression analysis for the provided data is performed on Microsoft Excel.
The output is attached below.
(1)
The estimated regression equation that could be used to predict the total cost for a given production volume is:
(2)
The variable cost per unit produced is given by the slope of the line.
The slope of a regression line represent the value of the dependent variable for one unit of the independent variable.
So, the variable cost per unit produced is $7.60.
(3)
Consider the regression output attached.
The coefficient of determination is 0.96 or 96%.
This implies that the percentage of the variation in total cost that can be explained by production volume is 96%.
(4)
For Volume = 500 units predict the total cost as follows:
Thus, the estimated total cost is $5,046.67.
$273 ,000 being the equal installments for all the three years
Explanation:
I year interest = $ 630,000 ×15÷100 = 94,500
II year interest = $420,000×15÷100 = 63,000
III year interest = $210 ,000×15÷100 = 31,500
Total interest = 94,500+63,000+31,500 = 189.000
Installments payment with interest for each year is=
(630,000 + 189,000 = 819,000÷ 3 = 273,000)
= $273 ,000 being the equal installments for all the three years