Scribd Logo
Upload

Welcome to Scribd!

  • 177 views

    Eclectic Accounting Problems

    Uploaded by

    Harsha Mohan
    1. Nelson Industries manufactures parts for obsolete aircraft engines. Sales have declined each year from 945 in 1998 to 210 in 2007. A linear regression model estimates past sales and predicts future sales of 168 for year 11. 2. MVTA believes airline bookings are related to mean income in cities where it has offices. A linear regression of bookings on income using data from 12 cities will evaluate this relationship. 3. A multiple regression model estimates auto sales based on population and household income using data from 10 cities. It explains 87% of variation in sales and predicts sales of $185792 for a city with income of $23175 and population of 128.07.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Eclectic Accounting Problems

    Uploaded by

    Harsha Mohan
    177 views2 pages
    1. Nelson Industries manufactures parts for obsolete aircraft engines. Sales have declined each year from 945 in 1998 to 210 in 2007. A linear regression model estimates past sales and predicts future sales of 168 for year 11. 2. MVTA believes airline bookings are related to mean income in cities where it has offices. A linear regression of bookings on income using data from 12 cities will evaluate this relationship. 3. A multiple regression model estimates auto sales based on population and household income using data from 10 cities. It explains 87% of variation in sales and predicts sales of $185792 for a city with income of $23175 and population of 128.07.

    Original Description:

    An electic compendium of Accounting Problems to excite even the sharpest brains!

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Nelson Industries manufactures parts for obsolete aircraft engines. Sales have declined each year from 945 in 1998 to 210 in 2007. A linear regression model estimates past sales and predicts future sales of 168 for year 11. 2. MVTA believes airline bookings are related to mean income in cities where it has offices. A linear regression of bookings on income using data from 12 cities will evaluate this relationship. 3. A multiple regression model estimates auto sales based on population and household income using data from 10 cities. It explains 87% of variation in sales and predicts sales of $185792 for a city with income of $23175 and population of 128.07.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    177 views2 pages

    Eclectic Accounting Problems

    Uploaded by

    Harsha Mohan
    1. Nelson Industries manufactures parts for obsolete aircraft engines. Sales have declined each year from 945 in 1998 to 210 in 2007. A linear regression model estimates past sales and predicts future sales of 168 for year 11. 2. MVTA believes airline bookings are related to mean income in cities where it has offices. A linear regression of bookings on income using data from 12 cities will evaluate this relationship. 3. A multiple regression model estimates auto sales based on population and household income using data from 10 cities. It explains 87% of variation in sales and predicts sales of $185792 for a city with income of $23175 and population of 128.07.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1- Nelson Industries manufactures a part for a type of aircraft engine that is becoming

    obsolete. The sales history for the last 10 years is as follows:

    Year Sales Year Sales


    Dec-98 945 Dec-03 420
    Dec-99 875 Dec-04 305
    Dec-00 760 Dec-05 285
    Dec-01 690 Dec-06 250
    Dec-02 545 Dec-07 210
    a. Plot sales versus time.
    b. Estimate the regression model for a linear time trend of sales.
    c. What is the root-mean-squared error of the linear regression estimates for these 10
    years?
    d. Using this model, estimate sales for year 11.
    2- Mid-Valley Travel Agency (MVTA) has offices in 12 cities. The company believes that its
    monthly airline bookings are related to the mean income in those cities and has collected
    the following data.

    Location Bookings Income


    1 1,098 43,299
    2 1,131 45,021
    3 1,120 40,290
    4 1,142 41,893
    5 971 30,620
    6 1,403 48,105
    7 855 27,482
    8 1,054 33,025
    9 1,081 34,687
    10 982 28,725
    11 1,098 37,892
    12 1,387 46,198
    a. Develop a linear regression model of monthly airline bookings as a function of income.
    b. Use the process described in the chapter to evaluated your results.
    3- Develop a multiple-regression model for auto sales as a function of population and
    household income from the following data for 10 metropolitan areas:

    Area Auto Sales Household Income Population


    1 185792 23409 133.17
    2 85643 19215 110.86
    3 97101 20374 68.04
    4 100249 16107 99.59
    5 527817 23423 289.52
    6 403916 19426 339.98
    7 78283 18742 89.53
    8 188756 18553 155.78
    9 329531 21953 248.95
    10 91944 16358 102.13
    a. Estimate values for 𝑏0 , 𝑏1 , and 𝑏2 for the following model:
    𝐴𝑆 = 𝑏0 + 𝑏1 (𝐼𝑁𝐶) + 𝑏2 (𝑃𝑂𝑃)
    b. Are the coefficients for the two explanatory variables significantly different from zero?
    Explain.
    c. What percentage of the variation in AS is explained by this model?
    d. What point estimate of AS would you make for a city where INC=$23175 and
    POP=128.07?

    You might also like