TABLE 16-7 The Executive Vice-President of a Drug Manufacturing Firm Believes That

question 91

Short Answer

TABLE 16-7
The executive vice-president of a drug manufacturing firm believes that the demand for the firm's most popular drug has been evidencing an exponential trend since 1995. She uses Microsoft Excel to obtain the partial output below. The dependent variable is the log base 10 of the demand for the drug, while the independent variable is years, where 1995 is coded as 0, 1996 is coded as 1, etc.
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.996
R Square 0.992
Adjusted R Square 0.991
Standard Error 0.02831
Observations 12
Coefficients
Intercept 1.44
Coded Year 0.068
-Referring to Table 16-7, the fitted trend value for 1995 is ________.

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Definitions:

Subsidiary

A company controlled by another company, often referred to as the parent company.

Fair Value

The likely receipts from offloading an asset or the expenditure to relocate a liability, in a systematic transaction at the market rate on the day of valuation.

Initial Value Method

An accounting method where investments are recorded at their acquisition cost without subsequent change except for impairments and certain adjustments.

Full-Accrual Totals

A method of accounting that records revenues when earned and expenses when incurred, regardless of when cash transactions occur.