To Estimate the Mean Earnings Forecast for a Large Company

question 114

Short Answer

To estimate the mean earnings forecast for a large company, an investor looked up earnings forecasts from six financial analysts. The six forecasts he found were 200, 220, 300, 185, 210, and 210 (in millions). Suppose the investor knows the population standard deviation is 25 million. Calculate a 95% confidence interval of the population mean earnings forecast.

Explain the preexisting duty rule and its exceptions, including additional work and unforeseen circumstances.

Identify the characteristics and enforceability of illusory promises in contracts.

Understand how past consideration impacts the enforceability of promises.

Evaluate the impact of specific phrases like "paid in full" on the settlement of debts under the UCC.

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Definitions:

Output

The amount of goods or services produced by a company, industry, or economy within a specific period.

Long-run Phillips Curve

An economic concept illustrating that in the long-term, there is no trade-off between inflation and unemployment, suggesting that the natural rate of unemployment is unaffected by inflation.

Money Supply Growth Rate

The rate at which the total amount of money available in an economy increases over a specific period.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively seeking employment.