A Regression Analysis On The Value Of An Airline Stock Essay

A regression analysis is the process of constructing a mathematical function that can be used to predict how changes in one variable will affect another variable. In many business research situations, the key to decision making lies in understanding the relationships between two or more variables. For example, in an attempt to forecast the value of an airline stock from day to day, a market analyst might find it helpful to establish whether the price of an airline stock is correlated to the price Shell petroleum crude oil. In studying the behavior of the bond market, a broker might find it useful to know whether the interest rate of bonds is related to the prime interest rate. In studying the effects of advertising on sales, an account executive might find it useful to know how strong the relationship is between advertising dollars and sales dollars for a company. What variables are related to unemployment rates? Are minimum hourly rates, the inflation rate or the wholesale price in dex usable for predicting an unemployment rate? Simple regression analysis is a statistical tool that is used to predict the value of a dependent variable based on the value of at least on independent variable. Simple regression analysis helps explain the impact a change in the independent variable will have on the dependent variable. A simple regression analysis (SRA) studies only one independent variable (X) and how it relates to the dependent variable (Y). In simple regression analysis, theShow MoreRelatedFig 5.4 : Price Shareholders Of Hainan2420 Words   |  10 Pagesdays observer and the second in 2014-2 ten days also. We Note that the stock prices at the beginning of the month of July have been recorded at the opening price of 2.02 and 2.04 while the price of the company s prices was in 2014 at the beginning of February at a price of 1.84 opening and closing price of 1.85. After studying the reasons for the low stock prices turned out to be one of the factors are instrumental to the loss value 0.18 Yuan to the opening pric e and 0.19 to the price of closing isRead MoreWinglets902 Words   |  4 Pagesoperations department, and facilities department. From our initial investment data, we assumed a winglet cost of $700,000 per aircraft, installation of $56,000 per aircraft, and an additional day of downtime for each aircraft at $5,000 per day. The total value of the winglet installation per aircraft was $761,000 which was depreciated over a 7-year modified MARCS depreciation schedule. In addition to winglet installation, facility upgrade charges were deemed necessary by our Facilities Director. TheRead MoreCategorization Of The Global Terrorism Database ( 2015 )1683 Words   |  7 PagesGroup Subname2, Group Name3, Group Subname3, # Perpetuators, # Perpetuators Captured, Claim Responsibility1, Competing Claim, Claim Responsibility2, Motive Casualties and Consequences # Killed, # Killed US, # Wounded US, Extent of Property Damage, Value of Property Damage, # Hostage Kidnapped, # Hostage Kidnapped U.S., # Hours of Kidnapping/ Hostage, # Days, Kidnapped Hijacked Country, Ransom Amount, Ransom U.S., Ransom Paid, Ransom Paid U.S., Ransom Note, Hostage Kidnapped Outcome, # Released/Escaped/RescuedRead MoreQantas Airline Financial Valuation and Sensitivity Analysis3525 Words   |  15 Pagessummary 1 Introduction 2 VALUATION 2 1. Select a company listed on the Australian Stock Exchange, find and download the following data 2 2. using the data from 1b and 1c construct a Characteristic Line and determine Beta for the company. Is this Equity or Asset Beta? 2 3. Rebuild the Five Year Historical Financial Statement, extracting only relevant cash flow data for NPV analysis 5 4. Forecast another five years of relevant data. You must explain the method youRead MoreThe Economic Loss Of Terrorism1666 Words   |  7 Pagessecond type of measure is economic loss, measured as the loss of economic prosperity by people, firms, or governments and derived from impact studies of the resulting damages (Frey et al., 2007). The economic loss measurements capture the direct market value impact of terrorism, but do not fully account for intangible losses. Finally, the third category of measurement of impact is utility loss, often used in human resource journal articles concerning terrorism. The utility loss category captures the qualitativeRead MoreThe Financial Performance of Low-Cost and Full-Service Airlines in Times of Crisis8844 Words   |  36 PagesFinancial Performance of Low-Cost and Full-Service Airlines in Times of Crisis Triant Flouris, Thomas John Walker. Canadian Journal of Administrative Sciences. Halifax: Mar 2005. Vol. 22, Iss. 1; pg. 3, 18 pgs Abstract This paper examines the stock and accounting performance of three major airlines in the United States in the aftermath of the September 11, 2001, terrorist attacks. September 11 (9/11) resulted in dramatic changes in the airline industry and had significant implications for theRead MoreThe Boeing Company Analysis15797 Words   |  64 PagesADVANCED FINANCE CORPORATE ANALYSIS The Aerospace Defense Industry The Boeing Company Table of Contents EXECUTIVE SUMMARY 4 1. PRESENTATION OF THE BOEING COMPANY 5 1.1 Industry Analysis 6 1.2 Business of The Boeing Company 7 1.3 Origin and History’s Timelines of The Boeing Company 8 1.4 Management and Organizational Structure of The Boeing Company 11 1.5 The Corporate Strategy of The Boeing Company 14 2. THE SWOT ANALYSIS OF THE BOEING COMPANY 17 2.1. Strengths 17 2.2. WeaknessesRead MoreRegression analysis of oil price return3199 Words   |  13 Pagesï » ¿ Contents 1.0 Introduction and Motivation 2 2.0 Methodology 5 2.1. 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What is an appropriate required rate of returnRead MoreCase 16 Boeing 7e72208 Words   |  9 PagesManagement Summary 1 Cost of Equity 1 Equity Market Risk Premium 1 Beta 2 Risk Free Rate 2 Capital Structure Weights 2 Boeing 7E7 Project Evaluation 4 Circumstances for an economically attractive project 4 Market Demand 4 Market Share 4 Sensitivity Analysis 4 Conclusion 7 Board approval for the project? 7 Appendices 7 Appendix A 7 Objectives This report seeks to answer the following three questions about the Boeing 7E7 project: 1. What is an appropriate required rate of return against which to evaluate