How do you explain or interpret predictive model information?

Q: Discuss the major characteristics of a theory.

A: Discussion of major characteristics of a theory

Q: Explain CMO Mechanics?

A: Collateralized mortgage obligation: It is a financial instrument that raises funds by…

Q: What is Scenario Analysis?

A: Scenario analysis is an important step in the financial modelling. This is used to show the possible…

Q: What are the steps to figure this out?

A: Journal: Recording of a business transactions in a chronological order.

Q: What type of model is this showing?

A: Valuation models: There are three models that investors can employ to determine the intrinsic value…

Q: What are the basic criteria for selecting a forecasting model?

A: The process that is used to anticipate the demand for the product or service of the business is…

Q: Briefly explain the major components of AIS

A: SOLUTION- ACCOUNTING INFORMATION SYSTEM (AIS) IS A WAY OF TRACKING ALL ACCOUNTING AND BUSINESS…

Q: Describe sensitivity analysis? Give an example?

A: Sensitivity Analysis:The process to evaluate the effect of change in one variable on the end result…

Q: Describe about the intuitive approach?

A: Supervisors regularly depend on models and intuition to make fast decisions. Intuitive decision…

Q: Define the term predictive value.

A: Predictive value refers to the fact that quality financial information can be used to base…

Q: Describe the assumptions underlying CVP analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: Describe the usefulness of a conceptual framework.

A: A conceptual framework can be defined as a system of ideas and objectives that lead to the creation…

Q: How will you collect, classify and present statistical data?

A: For statistical analysis, there are several methods used to gather or collect data. Three of the…

Q: What role does MAD play in evaluating a forecasting model?

A: MAD refers to mean absolute deviation. It is also known as average absolute deviation which is the…

Q: Describe the term CVP analysis.

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that…

Q: suitable behavioral model?

A: Behavioral Model: Behavioral Model from its name only suggests the study of behavior. The study of…

Q: What are the key assumptions of the CAPM?

A: Introduction: The CAPM is an equilibrium model that stipulates the relationship between necessary…

Q: What assumptions are inherent in the EOQ model as presentedhere?

A: Economic order quantity (EOQ): Economic ordering quantity (EOQ) is the perfect order quantity a…

Q: Compare judgmental, time series, and causal forecasting models.

A: Judgmental models are the subjective criteria in which gauges are based on master ideas. Individuals…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: Can you make QBI more understandable? Are you able to describe the steps?

A: Qualified Business Income Deduction (QBID) It is  the final  deduction  to be made  before…

Q: what is the purpose of the conceptual framework?

A: The conceptual framework is comprised of six Financial Accounting Concepts statements that serve as…

Q: Explain what is meant by the term decision model.

A: Every business has to take important decisions now and then. A proper understanding of the situation…

Q: What is the objective of having a conceptual framework?

A: Conceptual framework means set of rules and guidelines that help the users and preparers in…

Q: What are the CVP assumptions?

A:

Q: Explain Expectations Theory?

A: Expectations theory attempts to predict what short-term interest rates will be in the future based…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: What is counterbalancing?

A: Errors: The comparability and consistency of the financial statements decreases when a company…

Q: Describe EOQ decision model.

A: Economic order quantity (EOOJ: Economic order quantity is ideal order quantity that the company…

Q: Define scenario analysis

A: Scenario means a situation or circumstance which is influenced by various factors. Various if and…

Q: Discuss the concept of Monte Carlo simulation

A: Monte Carlo is also know as multiple probability simulation and it furnishes the user with a range…

Q: Distinguish planning decisions from control decisions?

A: Decision Making: Management of the business has to make good decisions for the growth and success of…

Q: What is feedback and how is it useful in an information system?

A: Definition: Accounting information system: The system which helps to gather, store, and process the…

Q: Describe the procedure to obtain the best-case NPW with scenario analysis?

A: Scenario analysis is a technique to break down and survey potential events that may happen later on…

Q: Define each of the following terms: e. Sensitivity analysis; scenario analysis; Monte Carlo…

A: Sensitivity Analysis is a tool used in financial modeling to analyze how the different values of a…

Q: Explain what is meant by the decision pattern ?

A: Decisions patterns is how decisions are made what is psychology behind the decision making.

Q: What is SAVANT Framework and what do you understand about it?

A: SAVANT stands for strategy, anticipation, value-adding, negotiating, and transforming. It was…

Q: Why is Scenario Analysis useful?

A: Scenario Analysis is a process where various (more than one) input changes are made at the same time…

Q: What is view modeling?

A: Definition: View modeling: The modeling technique used for the creation of an individual REA diagram…

Q: Explain Prepayment Assumptions?

A: Prepayment model : In simple words, A prepayment model is employed in banking to forecast the amount…

Q: What are the main components of DU pont Analysis? Explain.

A: Introduction Dupont analysis Dupont system of analysis is an approach that can be used to analyse…