In linear regression, compare independent and dependent variables.

Q: Describe how the FIFO method is different from the weighted-average method.

A: FIFO and weighted average method are the accounting tool for the inventory valuation. Under FIFO,…

Q: What is variance analysis? Explain?

A: Variance Analysis: Variance analysis is the process of ascertaining the deviations between actual…

Q: what are the three probability ratios equations?

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Define the following terms, using graphs or equations to illustrate youranswers wherever feasible:…

A: Characteristic lineIt a line that is helpful in summarizing specific security that helps in…

Q: What are the four key assumptions examined in specification analysis in the case of simple…

A: Simple regression:

Q: Define Sharpe’s reward to variability ratio

A: Answer: Nobel Laureate William Sharpe developed a risk-adjusted efficiency indicator for mutual…

Q: Define beta coefficient, b

A: Answer: Beta coefficient is a coefficient which leads to the measurement of stock volatility in…

Q: In a regression analysis, the variable that is being predicted is the a. Intervening variable O b.…

A: The variable that is attempted to clarify or anticipate is known as the the response variable,…

Q: calculate the standard deviation of returns.

A: Standard Deviation is the square root of the variance, which is the measurement of risk. And risk…

Q: What is indifference curve?

A: Indifference curve: It is a diagram indicating a mix of two items that give equivalent fulfillment…

Q: sion equation y = a + bx, the letter b is best described as a (n):

A: In the standard regression equation, b represents the variable coefficient.

Q: Define Beta coefficient

A: Beta coefficient shows the systematic risk of the assets. In simple words, the beta coefficient…

Q: Which method of forecasting is most widely used? a. Regression analysis. b. Exponential smoothing.…

A: Regression analysis method of forecasting is the most widely used method of forecasting....

Q: What is the Geometric-Gradient Series?

A: Geometric Gradient series is a series of funds that occur at every interval at decreasing or…

Q: A variable which can assume any value within a given range is a. Discrete variable O b. Quantitative…

A:

Q: xplain the shape of the Markowitz (that is, mean-variance) efficient frontier, specifically what…

A: Markowitz (that is, mean-variance) efficient frontier-It is also known as mean - variance model and…

Q: Explain the reasoning underlying the name of the weighted-average method.

A: The reason in underlying the name of the weighted average method is explained as below,

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: Identify one use of a multiple linear regression equation.

A: Regression Equation:   A regression equation is a form of algebraic expression consisting of…

Q: “Multicollinearity exists when the dependent variable and the independent variable are highly…

A: Multicollinearity:  Multicollinearity refers to a condition where two or more explanatory variables…

Q: variable(s) that are qualitative

A: Qualitative variable is a variable that varies with volume of activity which cannot be quantified in…

Q: The regression line in a scatterplot is also known as a(n): O A. R-squared line. O B. high-low line.…

A: A regression line seems to be a line that is used to define how a set of data behaves. In other…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: What are the differences and similarities between the Sharpe and Treynor measures?

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: Using the following the data below, graph the result and use linear regression to obtain the…

A: In finance linear regression is a method which is used to find the dependent variable with the help…

Q: Construct a sample problem of External Rate of Return (ERR).

A: External rate of return (ERR) or Internal rate of return (IRR) is the rate at which Present Value of…

Q: Explain Measures of Variance and Risk?

A: Variance tests normal or normal variability. Variability is volatility for investors, and volatility…

Q: The high-low method and least-squares regression are used by managers to

A: There are different methods used for estimating costs. Two of those methods are high-low method and…

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Q: What was the correlation between both return series?

A: Answer: Introduction: A linear correlation measure between two variables that is, An independent of…

Q: Explain Black - Scholes Model, Binomial Model, Monte Carlo Simulation

A: Black-Scholes Model: It is a method that is used for pricing the options contract. It also derives…

Q: What is the geometric-gradient-series present-worth factor?

A: Present worth: It is the present value of future cash flows. The gradient is a change occurring in…

Q: Explain arithmetic mean returns?

A: Arithmetic mean:It is a commonly used measure of  mean (or measure of average). Arithmetic mean is…

Q: Show how to estimate beta using regression analysis

A: Beta can be decided either with linear regression or simple regression. The regression lines slope…

Q: Discuss the main difference between the single-index model and the Markowitz optimization model.

A: Single Index Model- This article is concerning the quality rating model in political economy. For an…

Q: Define residual distribution model

A: The Residual Dividend Model or residual distribution model is a method deployed by company in which…

Q: Write an alternative way to derive the geometric-gradient-series present-worth?

A: Geometric-gradient-series present worth is derived with the help of the following formula: g is…

Q: Fill in the blanks. a. In multiple linear regression analysis, the independent variables are called…

A: Fill in the blanks:   Predictor variable: Predictor variable in a regression in the independent…

Q: Explain how you find the portion of the mean-variance-frontier that is the efficient frontier and…

A: There are two parts of portfolio one is return and another is risk.