The Partial Megastat Output Below Is Regression Analysis of the Relationship

question 34

Multiple Choice

The partial megastat output below is regression analysis of the relationship between annual payroll and number of wins in a season for 28 teams in professional sports. The purpose of the analysis
Is to predict the number of wins when given an annual payroll in $millions. Although technically not a sample, the baseball data below will be treated as a convenience sample of all major league professional sports.
Refer to the printout above. Predict the annual attendance (000) for a team with 100 wins

• A) 2,820.49
• B) 3,222.61
• C) 2,903.01
• D) 3,695.06
• E) 8,279.78

Evaluate the impact of reduced shipping and selling costs on transfer pricing.

Compare internal transfer pricing to external purchasing options.

Understand the concept of transfer pricing and factors influencing the minimum acceptable transfer price.

Recognize the importance and methods of allocating fixed and variable costs to operating departments for performance evaluation.

---

Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Stock Price

The current price at which a share of a company is traded on the stock market, reflecting the value the market places on the company.

Exercise Price

The predetermined price at which an option's holder can buy (for call options) or sell (for put options) the underlying asset.

Put Option

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified period.