Google R & D Spending. In 2009, Google spent about $2800 million on research and development and spent $8000 million in 2013. The relationship between Google's spending and time has been linear; in the problem that follows, assume that the relationship will remain linear until 2030. a) Find a linear function that models Google's spending as a function of time. b) Use your model to predict Google's R & D spending in 2020. c) Write, including units, and interpret the slope of your model.

Google R & D Spending. In 2009, Google spent about $2800 million on research and development and spent $8000 million in 2013. The relationship between Google's spending and time has been linear; in the problem that follows, assume that the relationship will remain linear until 2030. a) Find a linear function that models Google's spending as a function of time. b) Use your model to predict Google's R & D spending in 2020. c) Write, including units, and interpret the slope of your model.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 9P

See similar textbooks

Similar questions

ABC is an online-to-offline platform that sells e-commerce products to offline customers through a network of agents. ABC gives a commission to agents for each sale made. ABC has 4 main product categories: electronics, fashion, supermarket, and others. Please refer to the exhibits for data sets pertaining to the questions below. Today is May 16th. Q : 1. Today is May 16th. We have got the interim result of the sales figures in the first half of May. Typically, the first half of the month constitutes of 40% of sales. Using this assumption, will we reach our May target? What % over the target will we over/under-deliver?answer : over/deliver by ... % of target Using that assumption, which category (or categories) will not reach the targeted sales figures in May?answer : ............
This a 4 part question that am confused about. Please show the work by hand not excel. 4-1 Sales of a particular product (in the thousands of dollars) for the years 2015 through 2018 have been $48,000, $64,000, $67,000 and $83,000 respectively. (a)What sales would you predict for 2019, using simple four-year moving avaerage? (b) What sales would you predict for 2019, using a weighted moving average with weights of 0.50 for the immediate preceding year and 0.3, 0.15, and 0.05 for the three years before that? (I am able to calculate and know the answer for (a) $65,000 and (b) $73,000. What I don't understand is the following : 4-2 Using exponential smoothing with a weight of 0.6 on actual values: (a) If sales are $45,000 and $50,000 for 2017 and 2018, what would you forecast for 2019 ? (The first forecast is equal to the value of the preceding year.) (b) Given this forecast and actual 2019 sales of $53,000, what would you then forecast for 2020? 4-3 In Problem 4-1, taking…
XYZ work in a small electric business in Basrah city. He had a sunshine controller device. He had to decide how to market his idea, and in the short term, his options could be summarised as selling the device locally, selling nationally through a website, entering a partnership with an existing company or selling the patent. His returns depended on demand, which he described as high, medium, or low. Using this simple model, he developed the matrix of potential annual gains shown below: Options Demand High Medium Low Market locally 60 90 45 Use website 23 90 78 Partnership 12 25 89 Sell patent 30 30 30 Identify the decision taken under the following approaches: (1) Equal probability (2) Regret (3) Hurwicz criterion. Note: The decision maker's degree of Pessimistic (a) is 0.3.
The U.S. pharmaceutical market is the largest in the world in which it generated over 530 billion U.S. dollars in 2020. The industry sales growth rate is expected to continue growing, and it will be worth 685.45 billion U.S. dollars by 2023. Johnson & Johnson (J&J) is the current market leader in the U.S. pharmaceutical industry and its market share increased by 7.89% in 2020. After applying the BCG Matrix, the CEO of J&J found that the pharmaceutical segment generates the majority of his company’s sales. Therefore, he decided to allocate more capital to research and development in this segment. He is particularly interested in enhancing the effectiveness of their Janssen COVID-19 vaccine. Which of the following strategies did the CEO of J&J decide to pursue? * Market developmentProduct DevelopmentHorizontal IntegrationMarket penetration
Cost Estimation; High-Low and Regression Methods The Mac Davis Company specializesin the purchase, renovation, and resale of older homes. Mac employs several carpenters and paintersto do the work for him. It is essential for him to have accurate cost estimates so he can determinetotal renovation costs before he purchases a piece of property. If estimated renovation costs plus thepurchase price of a house are higher than the house’s estimated resale value, it is not a worthwhileinvestment.Mac has been using the home’s interior square feet for his exterior paint cost estimations. Recentlyhe decided to include the number of external openings—the total number of doors and windows ina house—as a cost driver. Their cost is significant because they require time-consuming preparatorywork and careful brushwork. The rest of the house usually is painted either by rollers or spray guns,which are relatively efficient ways to apply paint to a large area. Mac has kept careful records of theseexterior…
Current Asset Usage Policy Payne Products had $2.4 million in sales revenues in the most recent year and expects sales growth to be 25% this year. Payne would like to determine the effect of various current assets policies on its financial performance. Payne has $3 million of fixed assets and intends to keep its debt ratio at its historical level of 50%. Payne's debt interest rate is currently 9%. You are to evaluate three different current asset policies: (1) a restricted policy in which current assets are 45% of projected sales, (2) a moderate policy with 50% of sales tied up in current assets, and (3) a relaxed policy requiring current assets of 60% of sales. Earnings before interest and taxes are expected to be 11% of sales. Payne's tax rate is 35%. What is the expected return on equity under each current asset level? Round your answers to two decimal places. Tight policy % Moderate policy % Relaxed policy %
. Suppose that you are working as an analyst. Your task is to value company XYZ based on financial data available for this company. Discuss how you would go about doing this using themultiple growth rate Gordon growth model. Critically evaluate your approach by discussing any assumptions you make (about forecasts, discount rate etc.). What data is needed to value XYZ?
A business conducted a linear regression to estimate its demand function and obtain the following demand function Q = 200 - 1.5P + 0.55A - 2.8Py + 0.05Inc, where P is price and A is advertising. When P = $21. A = $30 and Quantity = 160, find the profit-maximizing advertising-to-sales ratio (hint: first find the price and advertising elasticities). Type as either a decimal out two spaces, like 0.10 OR as a percentage like 10%. %3! %3! Question 17 During recessions, people's reservation price (aka reserve price) searching. which results in O drops; less O rises; more drops; more O rises; less
West Company’s contribution format income statement for March 2020 is givenbelow:Sales (15,000 units X $30 per unit) $450,000Variable expenses 315,000Contribution margin 135,000Fixed expenses 90,000Net operating income $ 45,000The industry in which West Company operates is quite sensitive to regularmovements in the economy. Thus, profits vary considerably from year to yearaccording to general economic conditions. The company has a large amount ofunused capacity and is studying ways of improving profits.Required:The company CEO has asked you as a Senior Manager to evaluate the belowsituations with recommendations:1- New equipment has come onto the market that would allow WestCompany to automate a portion of its operations. Variable expenseswould be reduced by $9 per unit. However, fixed expenses wouldincrease to a total of $225,000 each month. How Net Income wouldappear if the new equipment were purchased. As a Senior Manager,what factor/s would be paramount in your mind deciding…
The purpose of the Maricopa Association of Governments (MAG) is to achieve which of the following? It is a charter government association for the county. It is an organization that receives state funds for county projects. It is a group that meets to collaborate on project ideas. It is the largest Council of Government (COG) in Arizona and is a regional planning agency for funds received from the federal government.
Managers explain and voluntarily disclose the forecasted financial information to the external financial users at the beginning of the period. The purpose to provide the forecasted financial information is to help the external investors interpret managers’ forecasted earnings by examining the profitability of the firm when the investors forecast the earnings and make investment decision. Discuss the extent to which you agree/disagree with that trend? You should support your reasoning with example(s). "Use digital media to drive business" Teanna Bass ST. LOUIS-Teanna Bass dreamed of her own cosmetics business. After some research, and a company name from her twin sister, Teanna launched Sweet Tea Cosmetics in her college's student union. Teanna's goal: "Give the customer the best experience." Getting the right materials was Teanna's first step. She chose to buy her cosmetics rather than make them herself. "Sourcing is very important," explains Teanna. She chose her supplier in part…
A random sample of 10,000 customers was selected over a six month period. The data provides information on their current status with the bank as well as 12 additional attributes describing their demographic and banking information. what are the key predictors the bank should be aware of with their customers? Examples are included, but not limited to:Are female customers leaving more than males? Is there indication of customer departures associated with specific countries?Is there evidence of salary associated departures? what is an appropiate marketing strategy to attract and retain long term customers