Explain the role of regression models (time series and otherwise) in forecasting. That is, how is trend projection able to forecast? How is regression used for causal forecasting?
What will be an ideal response?
For trend projection, the independent variable is time. The trend projection equation has a slope that is the change in demand per period. To forecast the demand for period x, perform the calculation a + bx. For causal forecasting, the independent variables are predictors of the forecast value or dependent variable. The slope of the regression equation is the change in the Y variable per unit change in the X variable.
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A total asset turnover ratio of 3.5 indicates that:
A. For every $1 in assets, the firm earned gross profit of $3.50 during the period. B. For every $1 in assets, the firm produced $3.50 in net sales during the period. C. For every $1 in assets, the firm earned $3.50 in net income. D. For every $1 in assets, the firm paid $3.50 in expenses during the period. E. For every $1 in sales, the firm acquired $3.50 in assets during the period.
Lex reproduces Mina's copyrighted work without paying royalties. Lex is most likely excepted from liability for copyright infringement under the "fair use" doctrine if
A. Lex copies the entire work. B. Lex distributes the copies freely to the public. C. Lex's use has no effect on the market for Mina's work. D. Lex's use is for a commercial purpose.