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

question 3

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 industry EPS for the year 2004.

• A) $45.25
• B) $36.79
• C) $57.25
• D) $32.56
• E) $48.57

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Definitions:

Motor Units Recruited

The activation of a set of motor neurons and their associated muscle fibers, used to generate an appropriate level of force during muscular contraction.

Multiple Wave Summation

A phenomenon where muscle fiber contractions increase in strength due to rapid, repeated stimulation before full relaxation occurs.

Tetanus

An infection resulting from the Clostridium tetani bacterium, leading to muscle contractions, known as tetanus.

Stimuli Frequency

The rate at which stimuli are presented over time, affecting the response of sensory systems.