A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan.

College essay writing service
Question

More questions like this
scenario 2
5
See description
Statistic – Scenario Analysis
Are there factors other than…
Are there factors other than…
A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan.
4-2 Scenario Analysis: Cars Sold
A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan.
Interest Rate (%) Number of Cars Sold (100s)
3 10
5 7
6 5
8 2

The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output.
Regression Statistics
Multiple R 0.998868
R2 0.997738

Coefficient
Intercept 14.88462
Interest Rate -1.61538

Are there factors other than interest rate charged for a loan that the finance manager should consider in predicting future car sales?
Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning.The dealership’s vice-president of marketing has requested a sales forecast at the prevailing interest rate of 7%.
As finance manager, what reasons would you convey to the vice-president in recommending this forecasting model?
Is the prediction of car sales at 7% a reflection of the current downturn in the economy? How might this impact the dealership’s business?
Answer

Business management homework help
This is property of essayprince.net. We are the first stop for all students Buying research papers online. Our paper writing service is second to none. Come and Buy research papers online here, TODAY

Calculate your paper price
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Open chat
1
Hello Good Friend
We are here at your service.
How can we help you today?

Order your essay today and save 16% with the discount code SUMMERFEST20