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Auto Batteries. In October 2002, Consumer Reports listed the price (in dollars) and power (in cold cranking amps) of auto batteries. We want to know if more expen- sive batteries are generally better in terms of starting power. Here are the regression and residual output, where the response variable is Power.
Dependent variable is: Power R squared = 25.2% s = 116.0 with 33 - 2 = 31 degrees of freedom
Variable Coefficient SE(Coeff) t-ratio P-value
a) Is there evidence of a linear association between the price and cranking power of auto batteries? Test an appro- priate hypothesis and state your conclusion.
b) Is the association strong? Explain.
c) What is the equation of the regression line?
d) Create a 90% confidence interval for the slope of the true line.
e) Interpret your interval in this context.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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