Before starting any form of investment there is a need for planning. Planning will involve many things in consideration including in case there is loss. Therefore, business studies learners are equipped with the knowledge and thus are able to plan well and give solutions to any inconveniences. However, many learners find the subject tough my home wor writers offer assignment help. Below is a sample of questions asked in the discipline.
Financial Planning and Forecasting: Using Regression to Improve Forecasts
Regression analysis is a statistical technique that fits a line to observed data points so that the resulting equation can be used to forecast other data points. It is useful in excess capacity and economies of scale situations. Economies of scale occur when the ratio of assets to sales will change as the size of the firm increases. Regression analysis can lead to improved financial forecasts and better information which can be used to improve management’s actions
Quantitative Problem: Jasper Jewelry has $160 million in sales. The company expects that its sales will increase 5% this year, Jasper’s CFO uses a simple linear regression to forecast the company’s Inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between Inventories and sales (in millions of dollars) is as follows: Inventories – $11 +0.08(Sales)
Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company’s year-end Inventory level? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round Intermediate calculations. Round your answer to two decimal places million.
Get Assignment Help
Business subjects are wide and thus intertwined with other subjects including finance and accounting. The broad scope of the subject makes it difficult to handle for most learners distinctly when doing the assignments. Get high-quality assignment forms or experts by contacting my homework writers.