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

question 65

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 level of debt for the year 2004.

• A) $215.58
• B) $300.75
• C) $237.67
• D) $285.98
• E) $193.72

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Definitions:

Credit Union

A member-owned financial cooperative that provides traditional banking services like savings and loan facilities to its members.

Random Sample

A subset of individuals chosen from a larger set, where each individual has an equal probability of being selected.

Mean Cholesterol Level

The average value of cholesterol measurements across a group of individuals or samples, used in assessing health and disease risk.

Standard Deviation

A statistical metric that quantifies the spread of data points in a dataset relative to their average value.