Exhibit 13 In Addition a Regression Analysis Indicates the Following Relationship Between

question 75

Multiple Choice

Exhibit 13.1
Use the Information Below for the Following Problem(S)
Assume that you are an analyst for the U.S. Autoparts Industry. Consider the following information that you propose to use to obtain an estimate of year 2002 EPS for the U.S. Autoparts Industry:
$\begin{array}{lrr}\begin{array}{l}\\\\\text{Personal consumption expenditures}\\\text{Personal consumption expenditures}\\ \text{growth}\\\text{Industry Sales per share}\\\text{Industry Operating profit margin}\\\text{Industry Depreciation/Fixed Assets}\\\text{Industry Fixed asset turnover}\\\text{Interest rate}\\\text{Industry Total asset turnover}\\\text{Industry Debt/Total assets}\\\text{Industry Tax rate}\\\end{array}\\begin{array}{r}\\\text{Year 2003}\\\hline\text{\$6,800 Billion}\\\\\\ \$ 525 \\\\\\\\\\\\\\\\end{array}\\begin{array}{r}Estimated\\\text{Year 2004}\\\hline\\ 1.5 \% \\\\\\ 15 \% \\8.25 \% \\3\\6 \% \\1.2 \\45 \% \\36\%\end{array}\\end{array}$

In addition a regression analysis indicates the following relationship between growth in industry sales per share and personal consumption expenditures (PCE) growth is
%D Sales per share = 0.02 + 1.5(%DPCE)
-Refer to Exhibit 13.1.Calculate personal consumption expenditures for the year 2004.

• A) $7,500 billion
• B) $7,000 billion
• C) $7140 billion
• D) $7,550.5 billion
• E) $6,825.75 billion

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Definitions:

Evolutionary Advantages

Traits or behaviors that increase the chances of survival and reproduction of an organism within its environment, often leading to natural selection.

Mammals

Warm-blooded vertebrate animals characterized by the presence of mammary glands, which females use to feed their young, and hair or fur.

Difference

The state or condition of being unlike in nature, form, or quality.

Primate Grooming

A social behavior found in primates where individuals clean or groom each other's fur, serving both social bonding and hygiene purposes.