Question: A company has used regression analysis based on historical data to estimate the portion of dollars that will clear on a given business day. It

A company has used regression analysis based on historical data to estimate the portion of dollars that will clear on a given business day. It has determined that this proportion depends on the number of business days since the checks were distributed. The estimate proportions are given below
A company has used regression analysis based on historical data to estimate
if $700,000 in checks is distributed on Thursday April 8, can you make a schedule, according to which the checks are estimated to clear (explain why):
the portion of dollars that will clear on a given business day.

\begin{tabular}{|l|l|} \hline Business Days Since Distribution & % of Dollars Expected to Clear \\ \hline 1 & 15% \\ \hline 2 & 30% \\ \hline 3 & 25% \\ \hline 4 & 20% \\ \hline 5 & 10% \\ \hline Total & 100% \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|} \hline Date & BusinessDaysAfterDistribution & Day of the Week & PercentageofDollarsClearing & CorecastofDollars \\ \hline April 9 & 1 & Friday & 15% & 5 \\ \hline April 12 & 2 & Monday & 30% & \\ \hline April 13 & 3 & Tuesday & 25% & 5 \\ \hline April 14 & 4 & Wednesday & 20% \\ \hline April 15 & 5 & Thursday & 10% \\ \hline Total & & 100% & 5 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!