Instruction 14-13
the Manager of a Marketing Consulting Firm Has

question 151

Short Answer

Instruction 14-13
The manager of a marketing consulting firm has been examining his company's yearly profits.He believes that these profits have been showing a quadratic trend since 1990.He uses Microsoft Excel to obtain the partial output below.The dependent variable is profit (in thousands of dollars),while the independent variables are coded years and squared of coded years,where 1990 is coded as 0,1991 is coded as 1,etc.
SUMMARY OUTPUT
Regression Statistics
$\begin{array} { l r } \text { Multiple R } & 0.998 \\ \text { R Square } & 0.996 \\ \text { Adjusted R Square } & 0.996 \\ \text { Standard Error } & 4.996 \\ \text { Observations } & 17 \end{array}$
$\quad\quad\quad\quad\quad\quad\quad$ Coefficients
Intercept $\quad\quad\quad\quad\quad 35.5$
Coded Year $\quad\quad\quad\quad 0.45$
$\begin{array} { l l } \text { Year Squared } & 1.00 \end{array}$
-Referring to Instruction 14-13,the forecast for profits in 2015 is ________.

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Definitions:

Net Capital Spending

This term refers to the total amount a company spends on acquiring or maintaining fixed assets, minus any sales of these assets, over a given period.

Earnings Per Share

A financial metric that measures the amount of a company's profit attributable to each outstanding share of common stock, calculated as net income divided by the number of outstanding shares.

Shares Of Stock

Equal units of ownership in a corporation, representing a claim on part of the corporation’s assets and earnings.

Net Capital Spending

The total expenditure on fixed assets minus any sales of fixed assets, reflecting a company's investment in its physical assets.