Exhibit 9.5 The Following Questions Are Based on the Description and Spreadsheet

question 30

Essay

Exhibit 9.5
The following questions are based on the description and spreadsheet below.
An analyst has identified 3 independent variables (X₁, X₂,X₃) which might be used to predict Y. He has computed the regression equations using all of the variables and the results are summarized in the following table.
-Refer to Exhibit 9.5. Predict the mean value based on (X₁, X₂, X₃) = (3, 32, 50). Use the best predictive model based on data from the table.

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Definitions:

Sustainable Earnings

The portion of a company's profits considered to be repeatable, stable, and able to be maintained over the long term.

P/E Ratio

A valuation metric that compares a company's stock price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Present Value

The computed present value of a future monetary sum or cash flow sequence, utilizing an established rate of return.

Growth Opportunities

Potential scenarios or plans a business can embark on to increase profits, expand its operations, or enter new markets.