Questions 3 and 4 Coursework Example | Topics and Well Written Essays - 500 words

Questions 3 and 4 - Coursework Example One partner suggests that the business should be moved to a vacant office in downtown Boston. She argues that the additional business gained will exceed the charges for rent and moving the office. The other partner at Progressive Business Solutions does not want to buy that idea. He argues that cost of office stationery and business cards is covered and that moving will prove to be costly. In the case of the partnership business, a lot of factors can be considered. The factors can originate from the evaluation of the costs and benefits. Every business entity will always want to make the most possible benefits .Reduction of costs is another target of the business. In this case, a partner’s decision is considered as optimal if it leads to the best outcome at a particular time. The outcome will make the participants in the business to gauge whether it is optimum or not. The partner needs to estimate how altering the business can affect both the benefits and the costs that the business incurs from carrying out that particular activity. If altering the activity makes the benefits to increase more than the costs, or the costs reduce more than the benefits, the partnership will grow. A security analyst specializing in the stocks of the motion picture industry wants to determine the relationship between the number of Movie Theater tickets sold in December and the annual level of earnings in the motion picture industry. Time-series data for the last 15 years are used to estimate the regression model. E = a + bN where E is total earnings of the motion picture industry measured in dollars per year and N is the number of tickets sold in December. The regression output is as follows: How well do movie ticket sales in December explain the level of earnings for the entire year? Present statistical evidence to support your answer. Also, sales of movie tickets in December are expected to be approximately 950,000. According to