Premium Essay

Ch16

In:

Submitted By royliang
Words 1276
Pages 6
Chapter 16

7. In 2011, home prices and mortgage rates fell so far that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent and the monthly mortgage on the median-priced home (including taxes and insurance) for 10 cities where the average monthly mortgage payment was less than the average asking rent (The Wall Street Journal, November 26-27, 2011).

a. Develop a scatter diagram for these data, treating the average asking rent as the independent variable. Does a simple linear regression model appear to be appropriate?
The below scatter diagram shows a possible curvilinear relationship between the average asking rent and the monthly mortgage on the median-priced home. Therefore, a simple linear regression model does not appear to be appropriate.

b. Use a simple linear regression model to develop an estimated regression equation to predict the monthly mortgage on the median-priced home given the average asking rent. Construct a standardized residual plot. Based upon the standardized residual plot, does a simple linear regression model appear to be appropriate?

The regression equation is
Mortgage ($) = - 198 + 1.07 Rent ($)

Predictor Coef SE Coef T P
Constant -198.0 187.7 -1.05 0.322
Rent ($) 1.0699 0.2148 4.98 0.001

S = 78.7819 R-Sq = 75.6% R-Sq(adj) = 72.6%

Analysis of Variance
Source DF SS MS F P
Regression 1 153962 153962 24.81 0.001
Residual Error 8 49653 6207
Total 9 203614

Unusual Observations Rent Mortgage
Obs ($) ($) Fit SE Fit Residual St Resid 1 840 539.0 700.8 25.5 -161.8 -2.17R
R denotes an observation with a large standardized residual.

Based on the standardized residual plot, the assumed

Similar Documents

Free Essay

Ntc/324 Week 5 Best Answers Ch 16, 17, 18, 19

...Ch16 1. B – Ch16 – Page 462-463 - Under – Understanding Group Policy Objects – There are 3 subheadings listed as Local GPOs, Domain GPOs, and Starter GPOs. The differences between these groups are explained here. 2. B – Ch16 – Page 463 – Under – Viewing the Group Policy Container - By default, installing Active Directory Domain Services on Windows Server 2012 creates two GPOCs, corresponding to two default GPOs: Default Domain Policy and Default Domain Controller Policy. The two GPCs are named using globally unique identifiers (GUIDs) assigned to the GPOs during their creation. 3. D – Ch16 – Page 482 – Under – Create Local GPO – After logging on to a Windows Computer using an account with Administrative privileges, the Server Manager Console appears and the steps to create Local GPO, then Secondary GPO, then a Tertiary GPO and the policy settings for each GPO are outlined here. 4. A – Ch16 – Page 485 – Under – Skill Summary - Group Policies applied to parent containers are inherited by all child containers and objects. You can alter inheritance by using the Enforce, Block Policy Inheritance, or Loopback settings. 5. B – Ch16 – Page 462 – Under Local GPO - All Windows operating systems have support for local Group Policy objects, sometimes known as LGPOs. Windows versions Windows Server 2008 R2 and Windows Vista support multiple local GPOs and enables you to specify a different local GPO for administrators or to create specific GPO settings for one or more...

Words: 1144 - Pages: 5

Premium Essay

Marketing Analysis

...AAA Office World (AAA) I. Key Facts 1. AAA Office World is a manufacturing company making office supplies. 2. Stasia Acosta must decide whether she should permit her largest customer to buy some of AAA’s commonly used file folders under the customer’s brand rather than AAA’s own FILEX brand. 3. If Stasia refuses, this customer BCI will go to another file folder producer and AAA will lose this business. 4. AAA’s refused this proposal twice in the past because of the company policy to avoid one company dependency and not to brand the product by customer name or logo. 5. BCI is a nationwide distributor of office supplies with 150 retail stores accounted for 30% of AAA’s business and its own brand on more than 45 high sales volume office supply products. 6. FILEX brand file folders accounted for about 35% of the 30% BCI volume of AAA. 7. AAA has been in business 28 years and has a sales volume of $40 million. 8. About 40% of AAA’s file folder business is in specialized line such as files for oversized blueprint and engineer drawings and waterproof files for marine and other hazardous environment markets. 9. AAA’s target markets are 10 regional stationery suppliers (40% of total sales) each provider has 6 branches and does sales directly to some retails and large corporations, BCI (30%) with 150 retail stores, and more than 40 local stationary (30%) with one wholesale and three retail stores. 10. The commonly used file folder...

Words: 610 - Pages: 3

Premium Essay

Renal Failure

...responsible for filtering out the waste products from the body. You create waste from the food and drink that is indigested. Kidneys are also responsible for maintaining the water-salt balance in your system which in turn helps maintain blood pressure. They also help maintain the acid base balance in your body. Kidneys produce Erythropoietin, a hormone that travels to the red bone marrow, where it stimulates the production of red blood cells. Your kidneys also activate the vitamin D that is synthesized by your skin via the sun or ingested when we eat certain foods. The kidneys transforms vitamin D into a form that we can use called calcitriol. Calcitriol promotes the absorption and use calcium and phosphorus by the body. (J.G. & B.M. ch16) When your kidneys fail they are then referred to as renal failure. Renal failure can happen for many reasons. Renal failure can be acute, meaning immediate or happening over the next couple of days. Kidney failure can also be chronic meaning progressive over time, which could take years. Causes include loss of blood, kidney stones, kidney disease; serve inflammation caused by damage, poisons and drugs. Symptoms include anemia, high blood pressure and low urine output. (J.G. & B.M.pg 323) Treatments include Dialysis and kidney transplant....

Words: 699 - Pages: 3

Premium Essay

Econ Course Project 2

...Course Project 2   Ch16 #6 Throughout history we have witnessed periods of hyperinflation have an effect on countries in dramatic ways. This duration of hyperinflation can take many years for a country to overcome through deflation to balance the value of their dollar. Hyperinflation is created by an extreme rapid inflation causing price increases to be so out of control that the concept of inflation is meaningless. For example, a sandwich that once cost $2 would now cost $3000 showing there is no relative value in relation to the country’s GDP (gross domestic product). Hyperinflation is to be in effect when inflation increased 50% in a month. These times of hyperinflation have been most noted in correlation to the Great Depression and previous wars. When associated with wars, hyperinflation often occurs when there is a loss of confidence in a currency's ability to maintain its value in the aftermath. Because of this, sellers demand a risk premium to accept the currency, and they do this by raising their prices. One of the most famous examples of hyperinflation occurred in Germany between January 1922 and November 1923. By some estimates, the average price level increased by a factor of 20 billion, doubling every 28 hours ("Investopedia,”). For many people living in a depressed area of hyperinflation they pay a serious consequence to their economies falter. They may have saved their whole lives planning on retirement just to see it vanish because of the hyperinflation...

Words: 1409 - Pages: 6

Free Essay

Database Design Paper Dbm 380

...Database Design Paper Joseph Schmosef University Of Phoenix (ecampus) DBM/380 Sunday, April 01, 2012 “A database is a structured collection of records or data that is stored in a computer system. In order for a database to be truly functional, it must not only store large amounts of records well, but be accessed easily. In addition, new information and changes should also be fairly easy to input.” (tech-faq.com) To ensure usefulness over the long-term, databases should be built with high data integrity and the ability to recover data if the hardware fails. Information that has been corrupted or destroyed serves no purpose within a business structure. Being the Armed Forces is like being a field value in one giant database. Everything from the gear we are issued to how we are identified as an “individual” (ssn#) is a scannable number to be coded, referenced, and utilized by anyone with proper clearance. “The database architecture is the set of specifications, rule, and processes that dictate how data is stored in a database and how data is accessed by components of the system.” (wingenious.com) Database architecture type s can be broken down into three broad categories, each of which can have several subcategories: One Tier, Two Tier- client/server, and “N” Tier- client/server. The One Tier architecture is best suited to the single user and relatively small amounts of data. It runs on the user’s local machine and references a file that is stored on that machine’s...

Words: 668 - Pages: 3

Premium Essay

You Decide Week 5

...You Decide Week 5 Assignment MM 577 Keller Graduate School of Management June 3, 2012 1) How do you think the Sales Manager behaved on the call? Did the sales manager and Joe demonstrate that they had prepared for the call? I feel that the Sales Manager acted poorly and inappropriately on the call. Twitching and squirming in his seat and showing obvious frustration during the call is highly unprofessional in my opinion. If I were the Lab Manager and someone trying to sell me something was acting like that I wouldn’t buy from them either. The fact that the Sales Manager was passing notes to Joe during the call is also in poor taste. Neither the Sales Manager nor Joe demonstrated that they had done any preparation at all for the sales call. Had they done so, they would not have been reviewing the things that they should have talked about such as following their Personal Selling Approach, establishing the needs and priorities of the hospital, and the benefits of the GENIE 465; they would have been talking about the sale that they just closed. 2) Did the Sales Manager help Joe during the call or did he hurt Joe's chances? Why or Why not? Did the Sales Manager help him to know how to handle a similar situation better in the future? Did the Sales Manager demonstrate good coaching? Why or why not? Joe and the Sales Manager went into the meeting with the expectation that the Sales Manager was not going to say anything. Perhaps this was so that Joe would not be nervous...

Words: 917 - Pages: 4

Premium Essay

Music

...ch16 Student: ___________________________________________________________________________ 1. A basic premise of health in early Asian culture was that: A. people have some control over their health. B. gods caused illness and disease. C. magic could cure illness. D. superstition determined treatment. 2. Your_______ plays a critical role in your health and consists of your attitudes, habits, choices, and behaviors. A. genetic potential B. heritage C. lifestyle D. health personality 3. The biological approach to health is being most closely followed when a physician: A. encourages a patient to reduce his/her stress level through relaxation training. B. prescribes a seminar on anger management for a patient with high blood pressure. C. prescribes a cholesterol-lowering drug for a patient with high cholesterol. D. encourages a cancer patient to join a support group. 4. Just a century ago, the leading cause of death was: A. cancer. B. heart disease. C. infectious diseases. D. stroke. 5. In the U.S. today, the number-one cause of death is: A. cancer. B. heart disease. C. infectious diseases. D. stroke. 6. In the U.S. today, the second-leading cause of death is: A. cancer. B. heart disease. C. infectious diseases. D. stroke. 7. Health psychologists endorse the _____________ model, which states that health is best understood in terms of a combination of physical, cognitive, and environmental factors. A. biopsychological ...

Words: 5084 - Pages: 21

Free Essay

Cdj1

...Students’ essay critiques6. Present Personal Essay Project | Donna HaasPPP: Ch 2- Recognize Elements of Good WritingH/O Sample OutlineH/O “The Lottery” QuestionsH/O Critical Thinking and the Personal EssayHOMEWORK:1. Read Ch 3 and do all assigned exercises.2. Read Ch 16-Do Exercises 2-6, 8 & 123. Read “Visiting Rites”, p. 6054. Read “How to Mark a Book”, p. 6355. Reading Logs | Hours 7 - 9Week 3Sept 29-Oct 3 | PART I: RHETORICAL SKILLSTOPIC SENTENCES AND CONTROLLING IDEAS1. Lecture: Ch 162. Review assigned exercises3. Group Work: “Book” & “Rites”3. CDJ #3-Earliest Memory4. Students’ essay critiquesPART II: RESEARCH SKILLS1. Intro to academic integrity2. EAHM AI Policy3. Using the library catalogue4. Exercise | Donna HaasPPP: Ch16 Topic Sentences/ Controlling IdeasHOMEWORK:1. Read “A Day at the Theme Pk” p 6152. Read Ch 17-Do Exercises 1,2,4, & 63. Reading LogsZafar Kahn/Scolah Kazi PLEASE BRING YOUR LAPTOP TO CLASS | Hours 10-12Week 4Oct 6-10 | PART 1: RHETORICAL SKILLSSUPPORTING DETAILS1. Lecture: Ch 172. Review Exercises 1,2,4, & 63. Group Work:” Theme Park”4. CDJ # 4- What do you want to do during your lifetime?PART II: RESEARCH SKILLSEVALUATING INFORMATION...

Words: 741 - Pages: 3

Free Essay

Application of International Law

...* What laws govern arbitration in the U.S.?  In Russia? Monarch Associates entered into a joint venture with Vladir Unlimited. Before signing this agreement did both parties really understand what a joint venture was going to entail. According to Jane Mallor a joint venture is “a form of business organization identical to a partnership, except that it is engaged in a single project, not carrying on a business” (Mallor, 2013). “When individuals, partnerships, or corporations make a private agreement to finance, produce, and sell goods, securities, or commodities for a limited purpose and/or a limited time, they have formed a joint venture. Joint ventures are a popular way for developing nations to attract foreign capital. (2008, Kubasek). The benefits and risks associated with a joint venture can be both beneficial and/or destructive. Some benefits can be as follows: 1) access to new markets and distribution networks 2) increased capacity, sharing the risks with a partner 3) access to greater resources and technology Some risks associated with joint ventures are: 1) The objectives of the venture are not 100 per cent clear and communicated to all those involved 2) The partners have different objectives for the venture 3) Different cultures and management styles resulting in poor integration and cooperation of the parties involved. These are just a few of the benefits and risks for those who are interested in joint ventures. * In your opinion,...

Words: 1121 - Pages: 5

Premium Essay

Task 2 Ebusiness

...Elero Omoba E-business QRT2 Task 2   E-Commerce Solutions By expanding a business, the company is going to use an online instant store vendor called Squarespace for E-Commerce. Squarespace is ideal for small business because, it’s quicker to create and cost effective. It also makes designing the website easy and fast and does not need any code expertise. The process of design is mainly a technique to choose from using drag and drop. Using square space is a plus because it benefits the company by having features that are easy to integrate to social media for example twitter and facebook. With trying to expand, it is easy to import information from previous vendors. It is also an easy payment option partnered with strip with a 2.9 % per transaction as well as coupon creation. When designing the website, strip is easy to register for and can be used by a customer from anywhere in the world for customers to have the abvility to use their credit card. Another important feature for using strip in squarespace is that the tax ID is also connected. And CitiLimo is able to add a bank account of any currency for example US, UK, or Canadian currency. Another feature is data management. Easy order management and shipping tools. The vendor itself will benefit by having a long term client and serves as advertisement when customers use their product. With squarespace, it is easy to add products, create shipping option, and connect with a stripe account. It is easy to update...

Words: 1842 - Pages: 8

Premium Essay

Crm at Minitrex

...WILMINGTON UNIVERSITY COLLEGE OF TECHNOLOGY SYLLABUS FACULTY MEMBER: Patrick Deely TERM: COURSE TITLE: IT Policy & Strategy COURSE NUMBER: IST.7100 TEXTBOOK: TITLE: IST 7100: IT Policy and Strategy, Wilmington University AUTHOR: Pearson Custom Library If you would like more precise information regarding the textbook(s) for this class, please visit the bookstore website at http://www.wilmcoll.edu/bookstore METHOD OF CONTACT: PREREQUISITE: IST7000, IST7020, IST7040, IST7060 All courses are open to students from all divisions. Only where a course is preceded by an introduction course is there a need to observe a prerequisite. However, students might benefit from prior knowledge on some of the courses, and this is given as the content found in your course catalogue by course code. I. COURSE DESCRIPTION The focus of this course includes: 1) The top management’s strategic perspective for aligning competitive strategy, core competencies, and information systems; 2) The development and implementation...

Words: 1426 - Pages: 6

Premium Essay

International Business Marketing

...CH 14 international marketing channels Distribution process The physical handling of goods, the passage of ownership, and especially important from a marketing viewpoint the buying and sellingnegotiations between the producers and middlemen and between middlemen and customers Agent middlemen In an international transaction, intermediaries who represent the principal rather than themselves; agent middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise Export management company (EMC) An important middleman for firms with relatively small international volume or those unwilling to involve their own personnel in the international function. These EMCs becomes an integral part of the marketing operations of its client companies. Working under the names of the manufacturers, the EMC functions as a low-cost, independent marketing department with direct responsibility to the parent firm. Export trading company (ETC) An act allowing producers of similar products in the united states to form an export trading company; the act created a more favorable environment for the formation of joint export ventures, in part by removing antitrust disincentives to trade activities. Distribution structure The system, present in every country’s market, through which goods pass from producer to user; within the structure are a variety of middlemen Merchant middlemen In international transactions, the intermediaries, located...

Words: 1460 - Pages: 6

Free Essay

Ifm Final Exam

...Đề cương |Bài tập tương ứng |Ghi chú | | |Chương 1. Tổng quan về quản trị tài chính quốc tế |Analyze Samsung and FPT F/S to understand the |- Read Chapter 1, 2, 3 | |1.1. Môi trường tài chính quốc tế |differences of a global ICT company and a local ICT |(Madura) | |Khái niệm |company. |Students/Groups may be asked | |Các yếu tố cấu thành môi trường tài chính quốc tế | |to present in the class. | |Các yếu tố ảnh hưởng đến môi trường đầu tư quốc tế | | | |1.2. Quản trị tài chính quốc tế | |Teams in charge | |Các khái niệm |Câu hỏi thảo luận |Một nhóm trình bày, các nhóm | |Phân biệt quản trị tài chính quốc tế và quản trị tài chính nội địa |1.1. Theo bạn, SS tham gia vào thị trường VN theo lý |khác phản biện. | |Mục tiêu của quản trị tài chính quốc tế |thuyết nào? (đọc trang6-8, Ch1, Madura) | | ...

Words: 1265 - Pages: 6

Premium Essay

Finance Review

...CH2 Assets=Liabilities +Stockholder’s Equity Cash Flow From Firm’s Assets=Cash Flow to Creditors + Equity Investor →CF(A)=CF(B)+CF(S) 一、 CF(A)=Operating Cash flow (OCF)-CAPEX-△NWC 1) OCF(看income statement)=EBIT + Depreciation -Tax paid EBIT=Revenue-Cost-Depreciation Tax=(EBIT-interest)*tax rate Earnings per share=Net income/total share outdating’s Dividends per share=Dividend/ total share outdating’s 2) CAPEX定义:Acquisitions-Sales of fixed assets 是out flow 需被finance CAPEX=△Total fixed assets+△accumulated depreciation=△PPE+△intangibles 3) △NWC=NWCend-NWCbeg financed by firm,是cash outflow长期 NWC=current assets-current liabilities 二、 CF(B)=Interest paid +debt retired-debt issued= Interest paid-New borrowing CF(B)= Interest paid-(ending long-term debt-beginning long-term debt) 三、 CF(S)=Dividends +share buybacks-stock issued Share buyback=treasury stock(end-beg) Stock issued=△common stock+△capital surplus CH7 Capital budgeting:accept or reject project. 一、 NPV:difference between sum of PV of future cash flow(只用cash flow,no earnings会计学上的;全部的CF of the project,discount rate)and initial cost. NPV rule:大于0接受,小于0reject.Positive NPV benefit stockholders Firm value=各种NPV加总(源自于cash flow)cash flow can only be estimated, 有risk Discount rate:return expected to earn on a financial asset of risk→opportunity cost 二、 Payback period: time that CF-initial cost>0,选择一个particular cutoff date对比之 NO timing of cash flow;ignore...

Words: 1536 - Pages: 7

Premium Essay

Marketing Plan

...DEVELOPING A MARKETING PLAN General 1. The purpose of a marketing plan is to determine the current situation a company is facing and then to generate marketing strategies and tactics in response. A quality marketing plan requires a careful analysis and understanding of the firm, its resources, and its customer base. Components of a Marketing Plan 2. Although there can be different formats which can be adopted, but a suggested sequence of marketing plan is as under:- a. Executive Summary b. Current Situation c. SWOT Analysis d. Marketing Objectives e. Target Markets f. Marketing Strategies g. Marketing Tactics h. Implementation i. Evaluation and Control Executive Summary 3. The executive summary appears first on this list of components, however, it is often written last. It summarizes the report for executives to read. It should be one to two pages in length. After an executive reads this section, he or she would have a basic grasp of the entire marketing plan. This should not be a teaser designed to get someone to read the plan. Instead, highlighting the content of the marketing plan should be the intent. Current Situation 4. The current situation involves an analysis of the firm’s internal environment, its external environment, its competitors, and its customers. Before decisions can be made about the future, it is important to assess the current status and situation. 5. Internal...

Words: 3277 - Pages: 14