Documenti di Didattica
Documenti di Professioni
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$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
1998 2000 2002 2004 2006 2008
Real Value =
Nominal Value
Current Year Index / Previous Years Index
Or
Nominal Value
1 + Inflation Rate
2010 CMA Part 1 Section A - Planning, Budgeting and Forecasting 72
Causal Forecasting
This is used when we know that the value we are
calculating is affected by another variable; for
instance, the level of sales is affected by the level
of advertising expenditures.
If there is a cause and effect and a linear
relationship, we can use projection.
In simple linear regression, there is only one
independent variable (the cause)
In multiple linear regression, there is more than
one independent variable.
Where:
Initial time is the amount of time required for the first lot,
first batch or first unit
LC = the learning curve percentage (as a decimal)
Standard Deviation
Expected Return