$16‚650 Budgeted Profit $606‚350 Hours billed variance =(Actual Hrs billed - Budget Hrs billed)*Budgeted Avg billing rate $278‚100 F Average billing rate variance =(Actual Avg billing rate - Budget Avg billing rate)*Actual Hrs billed ($246‚090) U # of consultants variance =(Budget # of consultants - Actual # of consultants)*Budget avg compensation per consultant ($133‚200) U Compensation rate variance =(Budget Avg compensation per consultant - Actual Avg compensation
Premium Expense Operating expense Income statement
Determine the revenue variance from Arcadia Hospital’s 2005 budget. Is the variance positive or negative? Upon reviewing the Arcadia Hospital Income Statement for the year of 2005‚ I would say that the variance is negative because the actual budget for 2005 $568 million minus the budget of $596 million equals a negative amount of $28 million under budget‚ which means less revenue. In other word‚ revenues were $28 million below budget‚ therefore the variance is negative. Which is desirable
Premium Variance Management Variable cost
coefficient estimates. However‚ it typically causes OLS to no longer be the minimum-variance estimator. The error term causes the independent variable to fluctuate more‚ increasing their variance. Moreover‚ the OLS estimates of the standard errors become biased‚ leading to unreliable hypothesis testing. Heteroskedasticity increases the variance of the estimated coefficients variance‚ but OLS underestimates the variance. -impure heteroskedasticity caused by an omitted variable will have possible specification
Premium Regression analysis Normal distribution Variance
ENTREPRENEURSHIP MODULE (ENT 205) STANDARD DEVIATIONS AND VARIANCES ESTIMATIONS Estimation of ( and (2 Although there are a number of methods of estimating the standard deviation of a population the sample standard deviation is the most widely used estimator of this parameter. If we use s to make inferences about ( (or s2 to make inference about ( 2 ) the theory on which a confidence interval for ( is based requires that the population sampled has roughly the shape of a normal distribution
Premium Normal distribution Variance Standard deviation
is the square root of the variance. The population standard devia¬tion is denoted by σ. Like the variance‚ the standard deviation utilizes the sum of the squared deviations about the mean (SSx). It is computed by averaging these squared deviations (SSX/N) and taking the square root of that average. One feature of the standard deviation that distin¬guishes it from a variance is that the standard deviation is expressed in the same units as the raw data‚ whereas the variance is expressed in those units
Premium Standard deviation Variance Normal distribution
higher variance. If we compare both stocks‚ Reynolds is riskier than Hasbro in this case. The higher variance indicates higher chance that the actual return on Reynolds will deviate from the expected return. S&P 500 REYNOLDS HASBRO Mean/Average 0.574333 1.874833 1.183833 Variance 12.972333 87.730541 65.866763 Standard Deviation 3.601713 9.366458 8.115834 Answer 2. At individual stock level‚ Reynolds fluctuates more than Hasboro as it has higher Standard Deviation and higher variance. After
Premium Standard deviation Variance Investment
common mean µ but 2 2 2 have variances σ1 ‚ σ2 ‚ · · · ‚ σn (which need not be the same) show that the sample mean ¯ Y is an unbiased estimator of µ with standard deviation 1 n 1 2 n 2 σi . i=1 (ii) A student takes independent measurements of an instrument but‚ owing to fatigue‚ 2 the variance of his measurements increases linearly‚ i.e.‚ σr = σ 2 + rc where σ 2 > 0 ¯ c > 0 (r = 1‚ · · · ‚ n). Use the result of (i) to show that the variance of Y is never less 1 ¯ is not
Premium Standard deviation Normal distribution Variance
50 55 60 65 70 75 80 85 90 95 100 Q1 : 44.5 % Q2 : 58.0 % Q3 : 69.0 % Lecture 12 - CHEE 231 – Fall 2013 – Prof. Girard-Lauriault 2 Sampling Distribution‚ unknown Variance While we know that X is normally distributed (Central Limit Theorem)‚ it is important to have a good point estimate on σ to use the z distribution as a probability distribution function for X . Rule of thumb: If n≥30 the normal approximation
Premium Normal distribution Variance Confidence interval
Executive Summary The purpose of this report is to analyze customer’s profitability to provide relevant information for Internet strategy in Pilgrim Bank. To get a conclusion from the disagreements between charging online banking fees and offering customers incentives to use online banking‚ I obtained relevant data and compared online and offline customers’ profitability. Since only comparing balance level will miss some important information‚ such as‚ the cost of serving individual customers‚ therefore
Premium Variance Profit Arithmetic mean
1) Determine the direct costs and overhead variances. What might be causing each of the variances to occur? In the Frame assembly department‚ the main variances are related to the forecast not precise of actual weight of the materials and underestimation of actual prices. See below: [pic] In the wheel assembly department the main variance is in quantity as shown below: [pic] And also related to rework of parts with
Premium Variance Management Cost