ABC Corporation is trying to forecast the effect of an upcoming environmental regulationon the variable costs of one of their key products. The regulation is still being debated inthe legislature. There is a 50% chance that the regulation will not be released in time toaffect next year's variable costs. ABC management expects the regulation, when it isreleased, is equally likely to increase variable costs by either 5% or 10%. Currently, theproduct's variable costs are P140 per unit. Based on these expectations, what is theexpected variable cost for ABC's key product next year?

Given Information: Consider the possible outcomes in the given study: The probability that the…

Answered: ABC Corporation is trying to forecast…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Please please solve all parts of the question. Thank you so much.
.A new, miracle diabetes drug that diminishes major symptoms of diabetes has been approved by the FDA. Health care professionals and researchers believe that the new drug will prolong lifespan of diabetes patients. If the population is in steady state and the incidence is constant, what will the effect of this new drug be on the prevalence of diabetes in the population? Explain.
The Excel file (Forecasting Assignment Data) contains quarterly motorcycle shipments for Harley-Davidson from 2000 through 2006. Forecast Harley-Davidson quarterly motorcycle shipments for 2007 using 1) Holt’s Method 2) Winter’s Method 3) Linear Trend Model 4) Quadratic Trend Model 5) Quadratic Trend with Seasonal Indices Model In addition, make a recommendation of which forecasting method you think Harley-Davidson should use and why. Year Quarter Period DemandAt 2000 1 1 49,057 2 2 53,329 3 3 48,077 4 4 54,129 2001 1 5 54,154 2 6 60,161 3 7 56,611 4 8 63,535 2002 1 9 64,669 2 10 65,540 3 11 67,474 4 12 65,970 2003 1 13 70,608 2 14 76,025 3 15 67,458 4 16 77,056 2004 1 17 74,090 2 18 82,034 3 19 80,578 4 20 80,587 2005 1 21 76,716 2 22 77,128 3 23 87,585 4 24 87,588 2006 1 25 79,506 2 26 79,796 3 27 97,046 4 28 92,848
If actual period demand varies from the forecast by more than 3MAD, this indicates: there is 3% chance that the forecast is wrong. there is a 98% chance that the forecast is wrong. there is a 97% chance that the forecast is wrong. there is a 3% chance that the forecast is correct Moving to the next question prevents changes to this answer:
Discuss two extensions to the original GARCH (p,q) model and explain additional characteristics of financial data they might be able to capture.
The R-squared of a regression of an asset’s excess returns against a multi-factor asset pricing model indicates the proportion of the asset’s total volatility that is non-systematic. True False
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If a forecaster wanted to choose a forecasting model that avoided having a large forecasting error in any given period, which error metric should they use when evaluating their forecasting options? CFE O AFE MAD MAPE O MSE
1. Suppose that you estimate a model of house prices to determine the impact of having beach frontage on the value of a house.14 You do some research, and you decide to use the size of the lot instead of the size of the house for a number of theoretical and data availability rea- sons. Your results (standard errors in parentheses) are: PRICE; = 40 + 35.0 LOT¡ – 2.0 AGE; + 10.0 BED; – 4.0 FIRE; (1.0) (5.0) (10.0) (4.0) (10) N = 30 R2 =.63 where: PRICE¡ =the price of the th house (in thousands of dollars) =the size of the lot of the th house (in thousands of square feet) = the age of the th house in years =the number of bedrooms in the th house =a qualitative/dummy variable for a fireplace (1 = yes for the th house) LOT; AGE; BED; FIRE; a. You expect the variables LOT and BED to have positive coefficients. Create and test the appropriate hypotheses to evaluate these expectations at the 5-percent level. b. You expect AGE to have a negative coefficient. Create and test the appropriate…
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Movieflix, an online movie streaming service that offers a wide variety of award-winning TV shows, movies, animes, and documentaries, would like to determine the mathematical trend ofmemberships in order to project future needs. What is the nature of the relationship between advertising expenditure and membership? Forecast 2024 membership using an alternative method, clearly explaining the limitations of your selected method. What are the limitations of the method used in (iii)?
Stock A has an expected annual return of 18% and a volatility of 34%. Stock B has an expected annual return of 12% and a volatility of 28%. The correlation of the returns of the two stocks is equal to 0.4. Find the expected return of the efficient portfolio with a volatility of 29%. solve on paper please

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