Concept explainers
Boulanger Savings and Loan is proud of its long tradition in Winter Park, Florida. Begun by Michelle Boulanger 22 years after World War II, the S&L has bucked the trend of financial and liquidity problems that has repeatedly plagued the industry. Deposits have increased slowly but surely over the years, despite recessions in 1983, 1988, 1991, 2001, and 2010. Ms. Boulanger believes it is necessary to have a long-range strategic plan for her firm, including a 1-year forecast and preferably even a 5-year forecast of deposits. She examines the past deposit data and also peruses Florida’s gross state product (GSP) over the same 44 years. (GSP is analogous to gross national product [GNP] but on the state level.) The resulting data are in the following table.
# In $ millions.
b In $ billions.
a) Using exponential smoothing, with a = .6, then trend analysis, and finally linear regression, discuss which
b) Carefully examine the data. Can you make a ease for excluding a portion of the information? Why? Would that change your choice of model?
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
Additional Business Textbook Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management
Corporate Finance
MARKETING:REAL PEOPLE,REAL CHOICES
- Assume that you recently graduated with a degree in finance and have just reported to work as financial adviser at the brokerage firm of Capital Asas Berhad, Your first assignment is to explain nature of the Malaysian financial markets to Martin Johnson, a potential investor. He expects to invest substantial amounts of money through Capital Asas Berhad. He is very optimistic; therefore, he would like to understand in general terms what will happen to her money. Your supervisor has developed the following questions that you must use to explain the Malaysian financial system to Johnson. A) Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.arrow_forwardPlease provide correct solutionarrow_forwarddo a detailed swot (strength weakness oppurtunities and threat ) analysis on online banking .arrow_forward
- (3) How to interpret relationship between changes of GDP growth rate and unemployment rate? Now go to your notes (slides). Is the relationship you plotted similar as the Okun's Law predicts? Suppose you got a relation as GDP = a + b * UNemp, Are the coefficients of a and b are close to the value of Okun's Law? (4) Now repeat the plot you did in part (2) above. However, this time you use the sample only from 2000 to 2019. Any change to the relationship? How is the value of a and b in this sample?arrow_forwardExplain how capitec bank can prepare itself against the threat of new entrants to the banking industry.arrow_forwardYou are trying to invest $100,000 in a portfolio of stocks and bonds. You want the highest return possible but have a number of criteria to ensure diversification and risk management. The funds available for investment and their information are provided below. 2) Bond Rating| Year to Maturity Investment "Tech Sector" Expected Return GE Bond BBB 4 No 4.25% AMD Stock Yes 14% -- -- Moscow Bond ΑΑA 10 No 2.3% Apple Stock Pape Stock Yes 7% No 8.1% -- Tesla Inc. Stock Yes 6% -- Junk Inc. Bond D 3 No 17% Assume you want no more than 50% of total investments in stocks and no more than 15% invested in bonds with a rating below “BBB". Additionally, assume you want some liquidity such that no more than 70% of your investments can be in bonds with greater than 5-years until maturity. Further, you want at least 40% of your total investments in the Tech Sector (stocks or bonds). In Excel, create an LP that maximizes expected return subjects to the investment constraints listed above. Make sure to…arrow_forward
- In the present economic climate, Aubree ought to incorporate the subsequent three essential prerequisites within its loan offerings for Small Medium Enterprises (SMEs): 1. Adaptable Payment Conditions: Providing SMEs with flexible repayment alternatives can be vital due to the uncertainties and swings in the market. Possible features could encompass flexible payment schedules contingent on cash flow, periods of leniency during challenging economic circumstances, or opportunities for early payback without incurring penalties. The ability to adapt and change can assist small and medium-sized enterprises (SMEs) in efficiently handling their financial matters and decreasing the likelihood of failure to meet financial obligations. 2. Competitive Interest Rates: by offering a favorable and advantageous rate compared to other options in the market to attract and assist small and medium-sized enterprises (SMEs), Aubree should provide interest rates that are competitive, align with…arrow_forward6) Some people have said that the Soviet Union saved too much. Explain the benefit of saving in the long run and how over-saving could be possible. 7) Give an example of a government policy that could change savings behavior and an example that could change the productivity in an economy. 8) Explain why the Federal Reserve’s goals of lowering inflation and unemployment creates a time consistency problem. Explain using the short and medium run Phillip’s curve. 9) Show a liquidity trap situation on an IS-LM graph. Explain the possible policy changes to end this situation. ************* SHOW WITH GRAPHS PLEASE*********************arrow_forwardPlease help me solve this problem. Thanks!arrow_forward
- The demand for money in the economy sometimes for the motive of transactions, speculation, and precaution. The macroeconomic balance in the presence of money is shown by the curve following. A. How do you read and understand the following curve? B. The relationship between the demand for money for transactions and the demand money for this speculation why the angle is 45°? In graph explain what happens when there are: A. monetary contraction! B. monetary expansion!arrow_forwardro forma income statement. Given the income statement , for California Cement Company for 2013 and an expected sales growth rate of 6.67% for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) California Cement Company Income Statement for 2013 Sales revenue $ 22,869,000 Cost of goods sold $ -11,637,000 Selling, general, and administrative expenses $ -3,993,000 Depreciation expenses $ -1,331,000 EBIT $ 5,908,000 Interest expense $ -175,000 Taxable income $ 5,733,000 Taxes $ -2,512,462 Net income $ 3,220,538 What is the sales forecast for 2014? (Round to the nearest dollar.) The pro forma income statement for 2014 is: (Round to the nearest dollar.) California Cement Company Pro Forma Income Statement for 2014 Sales revenue $ ? 100.00% Cost of goods sold $ ? 50.885 %…arrow_forwardExploring the Efficiency of Financial Markets in the Caribbean: An Analysis of EvidenceSupporting and Challenging the Efficient Market Hypothesis. Explore the assertion regarding the state ofFinancial Markets, both globally and within the Caribbean region, evaluating whether they arecharacterized by market perfection or imperfection. Kindly argue in favorthat markets are perfect or that markets are imperfect, allowing for a comprehensive examination ofthe topic. To enhance the analysis of key points in the subject argument, it is imperative to employrelevant finance theories or concepts which either validate or refute the EMH. These concepts serveas a robust framework for understanding financial phenomena. By leveraging established concepts,one can systematically evaluate the evidence presented, thereby bolstering the argument'scredibility and depth.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.