The Following Information Pertains to the Three Divisions of Merrymount

question 108

Multiple Choice

The following information pertains to the three divisions of Merrymount Company: $\begin{array}{lrrr}&\text { Division } X& \text { Division } Y& \text { Division } Z\\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 36,000 & \$ 25,000 & \$ 7,000 \\\text { Average operating assets } & 300,000 & ? & ? \\\text { Retum on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Turnover } & 1.5 & ? & ? \\\text { Target ROI } & 15 \% & 12 \% & 10 \%\end{array}$ What are the average operating assets for Division Y?

• A)$25,000
• B)$208,333
• C)$5,000
• D)$125,000

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Definitions:

Outliers

Observations that lie an abnormal distance from other values in a random sample from a population.

Regression

A statistical method used to determine the strength and character of the relationship between one dependent variable and one or more independent variables.

Foreign Born

Individuals who were born outside of the country in which they currently reside.

Linear Model

A statistical model used to describe the relationship between one or more explanatory variables and a continuous response variable by a linear equation.