2. The following information are derived from Dow Jones Stock Exchange. These are the companies that make up Dow Jones Utility Index. (40 points) Symbol AES AEP CNP FD D DUK EIX EXC FE FPL NI PCG PEG SO WMB Company AES Corporation American Electric Power CenterPoint Energy, Inc. Consolidated Edison, Inc. Dominion Resources, Inc. Duke Energy Corporation Edison International Exelon Corporation FirstEnergy FPL Group Corporation NiSource PG&E Public Service Enterprise Group Southern Company, Inc. Williams Companies, Inc. Assets ($ billions) 34.806 45.155 19.676 33.498 42.053 53.077 44.615 47.817 33.521 44.821 20.032 40.860 29.049 48.347 26.006 Sales ($ billions) 16.070 14.440 10.725 13.479 16.290 13.207 14.112 19.065 13.627 16.680 8.309 14.628 13.322 17.110 11.256 Profits ($ billions) 1.234 1.380 0.391 1.077 1.834 2.195 1.215 2.867 1.342 1.754 -0.502 1.338 1.192 1.492 0.694 a. How are profits related to sales and profits? Explain by drawing graphs. b. Describe your variables for multiple regression analysis and develop your regression equation with QM. c. Is this regression equation a good or bad one why? d. If next year any of the company has 50.000 billion dollars as an asset and their sales is about 10.000 billion dollars, can you estimate the profits of the company?
2. The following information are derived from Dow Jones Stock Exchange. These are the companies that make up Dow Jones Utility Index. (40 points) Symbol AES AEP CNP FD D DUK EIX EXC FE FPL NI PCG PEG SO WMB Company AES Corporation American Electric Power CenterPoint Energy, Inc. Consolidated Edison, Inc. Dominion Resources, Inc. Duke Energy Corporation Edison International Exelon Corporation FirstEnergy FPL Group Corporation NiSource PG&E Public Service Enterprise Group Southern Company, Inc. Williams Companies, Inc. Assets ($ billions) 34.806 45.155 19.676 33.498 42.053 53.077 44.615 47.817 33.521 44.821 20.032 40.860 29.049 48.347 26.006 Sales ($ billions) 16.070 14.440 10.725 13.479 16.290 13.207 14.112 19.065 13.627 16.680 8.309 14.628 13.322 17.110 11.256 Profits ($ billions) 1.234 1.380 0.391 1.077 1.834 2.195 1.215 2.867 1.342 1.754 -0.502 1.338 1.192 1.492 0.694 a. How are profits related to sales and profits? Explain by drawing graphs. b. Describe your variables for multiple regression analysis and develop your regression equation with QM. c. Is this regression equation a good or bad one why? d. If next year any of the company has 50.000 billion dollars as an asset and their sales is about 10.000 billion dollars, can you estimate the profits of the company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2. The following information are derived from Dow Jones Stock Exchange. These are the
companies that make up Dow Jones Utility Index. (40 points)
Symbol
AES
AEP
CNP
FD
D
DUK
EIX
EXC
FE
FPL
NI
PCG
PEG
SO
WMB
Company
AES Corporation
American Electric Power
CenterPoint Energy, Inc.
Consolidated Edison, Inc.
Dominion Resources, Inc.
Duke Energy Corporation
Edison International
Exelon Corporation
FirstEnergy
FPL Group Corporation
NiSource
PG&E
Public Service Enterprise Group
Southern Company, Inc.
Williams Companies, Inc.
Assets
($ billions)
34.806
45.155
19.676
33.498
42.053
53.077
44.615
47.817
33.521
44.821
20.032
40.860
29.049
48.347
26.006
Sales
($ billions)
16.070
14.440
10.725
13.479
16.290
13.207
14.112
19.065
13.627
16.680
8.309
14.628
13.322
17.110
11.256
Profits
($ billions)
1.234
1.380
0.391
1.077
1.834
2.195
1.215
2.867
1.342
1.754
-0.502
1.338
1.192
1.492
0.694
a. How are profits related to sales and profits? Explain by drawing graphs.
b. Describe your variables for multiple regression analysis and develop your regression
equation with QM.
c. Is this regression equation a good or bad one why?
d. If next year any of the company has 50.000 billion dollars as an asset and their sales is
about 10.000 billion dollars, can you estimate the profits of the company?
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