exhibit 1 annual data -assume 31 observations variable coefficient std erro intercept 11.06 7.29 cost of gold 2.897 .615 exhibit 2 - regression independent variable intercept -3.9 gold price 4.7 labour costs .82 the gold is procesed but the total cost of the finished product shd not exceed $2000. what shd the price of gold be so the finished product should only cost $2000?
11.06+2.897X=2000 solve for x
686.5516051
I remember this question and hated it…wrote it off as another crappy schweser question.
686.55
yeah, this is definitely a Schweser question
but how do you know whether to use the data from exhibit 1 or 2. i was tempted to use the data from exhibit 2. pls explain.
were you provided with any data for the labor cost?
no but i was still tempted to go -3.9+4.7(x)= 2000. i don’t know how i should know that i shd have used the first exhibite. its in schweser book 6 if page 85 in case you want to veryfy the information
when you had a 2nd variable there shouldn’t you have gone +0.82 y = 2000. and then looked for y - which was not provided.
may be my question is what is the difference between the two exhibits. what is each one telling us in plain english?
variable coefficient std erro intercept 11.06 7.29 cost of gold 2.897 .615 here cost = 11.06 + 2.897 Gold used exhibit 2 - regression independent variable intercept -3.9 gold price 4.7 labour costs .82 Cost = -3.9 + 4.7 Gold + .82 Labor used So in the 2nd question - you have a labor component as well - which in the absence of information cannot be used. Why are so many people looking for explanations in “plain english” I cannot understand…
thank you CP. who ever asks for plain english is simply telling you their problem is bigger than you my imagine so you have to explain slow…ly and easily. by the way i need a plain englsh explaination on swaps but i don’t know how to ask because my problem is everything about the topic. thanks once again.
send me an email with a problem … and I can try to walk you thro’ it.
AudreyMwala Wrote: ------------------------------------------------------- > but how do you know whether to use the data from > exhibit 1 or 2. i was tempted to use the data from > exhibit 2. pls explain. WTF how would you use the data from exhibit 2 for this? that exhibit is just a partial student’s t-dist table!
cp, please give me your email again. am having a prolem with my email but i will sort it out tomorrow its 10:43pm here so its a bit late for my brain to grasp properly this tough topic. but i think the best way would be to go through two or three end of chapter questions in CFAI book. thank you once more