Given the following historic levels of cash (actual and forecast) of a firm: a. Calculate the standard

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Given the following historic levels of cash (actual and forecast) of a firm: image text in transcribed

a. Calculate the standard deviation of the forecasting errors.

b. Calculate the safety cash needed to cope with cash flows fluctuations if the treasurer of the firm wants the probability of running out of cash to be below 0.1 percent.

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Practical Finance For Operations And Supply Chain Management

ISBN: 9780262043595

1st Edition

Authors: Alejandro Serrano, Spyros D. Lekkakos, James B. Rice

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Question Posted: Apr 28, 2024 03:01 AM

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Given the following historic levels of cash (actual and forecast) of a firm: a. Calculate the standard

Question:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual 220 210 180 240 235 220 200 190 170 200 220 205 Forecast 190 170 200 220 205 220 210 180 240 235 220 200

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Practical Finance For Operations And Supply Chain Management

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