t 2 of 3-B Suppose the following model describes changes in Company ABC's sales: AABCt = 0.078 - 0.095(A ABCt-1) The current change (first difference) in the company's sales growth rate is 0.04. Jse this information to answer the questions below. (NB: For all the questions belc co 3 decimal places.) %3D
t 2 of 3-B Suppose the following model describes changes in Company ABC's sales: AABCt = 0.078 - 0.095(A ABCt-1) The current change (first difference) in the company's sales growth rate is 0.04. Jse this information to answer the questions below. (NB: For all the questions belc co 3 decimal places.) %3D
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What is the best prediction of the next change? (Give your answer in decimals)
Transcribed Image Text:Part 2 of 3 - B
Suppose the following model describes changes in Company ABC's sales:
A ABCt = 0.078 - 0.095(A ABCt-1)
The current change (first difference) in the company's sales growth rate is 0.04.
Use this information to answer the questions below. (NB: For all the questions below, give your final answers
to 3 decimal places.)
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Follow-up Question
Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first quarter of 2022.
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What is the prediction of the change following the next change? (Give your answer in decimals)
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