T 6 Decision

Question 1

Cash Formula

Answer 1

Cash Balance
\+Cash sales
-Cash expenditures
\+/- Change in AR
\+/-Change in AP
=Ending Balance

Question 2

Regression Analysis (main forecasting technique.

Answer 2

Evaluates the relationship between 2 variables.

Question 3

Regression Analysis between Total cost, variable cost, and fixed cost

Answer 3

Y= A + BX

Where:
Y= Total cost ( dependent variable)
A= Fixed cost (the Y-intercept)
B= Variable cost per unit ( le slope)
X= Number of units. (independent variable)

Question 4

Correlation Coefficient (R).

Answer 4

Correlation Coefficient (R) measures the strength of the relationship between the dependent and the independent variable. goes from -1 to 1.

-1 = negative correlation ( line descending towards the right similar to the slope of the demand curve)

o= No correlation, Graphic is a bunch of scattered dots with no sense.

1= positive correlation ( line ascending towards the right, similar to a normal supply curve).

Question 5

Coefficient of determination.

Answer 5

The Coefficient of determination, or R^2 ( R al cuadrado) , shows the degree to which the independent variable (X) predicts the dependent variable (Y). It never can be negative b/c is elevated at the 2nd potency.