AutoSave OFF mir warranty ratio estimate SUBMIT View Tell me Insert Draw Page Layout Formulas Data Review Calibrl (Body) 11 v AA 2 Wrap Text General B TV WA Merge & Center $ % D M N The Company generally provides a ce your limited product and service warranty on certain of its products. The Company provides for the estimated cost of this way be time of sale. These estimates we tablished using historical informatie bout the nature, frequency and werage cost of warranty claims. Wrony pense in 2016, 2015 and 2014, was $1,750.53,076 and 1,958, respectively The table below provides summary of the way liability: MILLA NOUSTAS SELICHID FINANCIAL DATA SYMBOL RY cos SOA Productive Cost of product sales Selling van administrative 2013 2014 404,170 492,776 361,714 439,791 28.12 284 Current Year 2015 2016 540.966 601,119 483,353 536,840 32.318 AWC. wx WC, AWC 2,622 WA Costs Beginning balance, red warranty.com Atted warranty pense Les changed to the Ending balance, werd warranty costs 1.064 1,35 4.357 1,086 12,359) 3,084 3.076 0.550 3.140 1,750 The value to be tested 2.4201 2.622 0.06 3,140 2.831 You wil medal of them Y- who is the of over a year al period the value will be plied to the model textmate which is the predicted value of warranty expensei 2016 Sheets Ready u 8 tv MacBook Pro LO o . ty AutoSave OFF w Draw Formulas Page Layout Data Review me insert View Tell me Calibri (Body) v 11 A A == 25 Wrap Text General te BIU V Merge & Center $ % A 8 D M You will use a model of the form YX where is the average of yx over a two-year historical period. X. the value that will be applied to the model to estimate, which is the predicted value of warranty expertise in 2016 Referring to the list of possible variables displayed in the left column, decide which will be the explanatory variable, substituting the left column wytholforAlso, decide on the appropriate subscript for y. I. Lo +1 For example, if you were using a radialysis to estimate cost of sales (COS) based on sales, each historical year's ratio would be COS,REV, and I would be the average for the 2 years and to estimate warranty expenses for 2016, CHOOSE YOUR VARIABLES VARIABLE SYMRO Y VARIABLE SYVICA SUBSCHEPT Beulabout your choice of dependent variable. you first choice will probably be wrong. Think about what variable actually can prove the accuracy of a year's warranty PERFORM THE CALCULATIONS HISTORY 2 CALCULATE THE RATIO FOR EACH YEAR, ONTAINING Y and X FROM TABLE ABOVE AVERAGE DIVO Sheet1 Ready 100 stv MacBook Pro X Calibri (Body) 11 AA General Wrap Text lllllll til I BIU A Merge & Center $ % IM IM fx D H M B. PERFORM THE CALCULATIONS HISTORY 1 2 WAX CALCULATE THE RATIO FOR EACH YEAR, OBTAINING Y and X FROM TABLE ABOVE AVERAGE STO DEV OIV/01 DIV/01 ENTER THE CELL REFERENCE. K141 FOR THE EXPLANATORY VALUE X TO APPLY TO THE AVERAGE RATIO AND STANDARD DEVIATON ESTIMATED WARRANTY EXPENSE YX] DIV/01 1 standard deviation limits Lower Upper DIVA IV/ Tolerable interval c. DRAW AUDIT CONCLUSIONS Assume that $500,000 is the maximum tolerablemistatment Wat conclusions recommandations de the above calculations sucrest about Mr's warranty expense for 2016? Sheet1 Ready 100 dtv s MacBook Pro SC S AutoSave OFF mir warranty ratio estimate SUBMIT View Tell me Insert Draw Page Layout Formulas Data Review Calibrl (Body) 11 v AA 2 Wrap Text General B TV WA Merge & Center $ % D M N The Company generally provides a ce your limited product and service warranty on certain of its products. The Company provides for the estimated cost of this way be time of sale. These estimates we tablished using historical informatie bout the nature, frequency and werage cost of warranty claims. Wrony pense in 2016, 2015 and 2014, was $1,750.53,076 and 1,958, respectively The table below provides summary of the way liability: MILLA NOUSTAS SELICHID FINANCIAL DATA SYMBOL RY cos SOA Productive Cost of product sales Selling van administrative 2013 2014 404,170 492,776 361,714 439,791 28.12 284 Current Year 2015 2016 540.966 601,119 483,353 536,840 32.318 AWC. wx WC, AWC 2,622 WA Costs Beginning balance, red warranty.com Atted warranty pense Les changed to the Ending balance, werd warranty costs 1.064 1,35 4.357 1,086 12,359) 3,084 3.076 0.550 3.140 1,750 The value to be tested 2.4201 2.622 0.06 3,140 2.831 You wil medal of them Y- who is the of over a year al period the value will be plied to the model textmate which is the predicted value of warranty expensei 2016 Sheets Ready u 8 tv MacBook Pro LO o . ty AutoSave OFF w Draw Formulas Page Layout Data Review me insert View Tell me Calibri (Body) v 11 A A == 25 Wrap Text General te BIU V Merge & Center $ % A 8 D M You will use a model of the form YX where is the average of yx over a two-year historical period. X. the value that will be applied to the model to estimate, which is the predicted value of warranty expertise in 2016 Referring to the list of possible variables displayed in the left column, decide which will be the explanatory variable, substituting the left column wytholforAlso, decide on the appropriate subscript for y. I. Lo +1 For example, if you were using a radialysis to estimate cost of sales (COS) based on sales, each historical year's ratio would be COS,REV, and I would be the average for the 2 years and to estimate warranty expenses for 2016, CHOOSE YOUR VARIABLES VARIABLE SYMRO Y VARIABLE SYVICA SUBSCHEPT Beulabout your choice of dependent variable. you first choice will probably be wrong. Think about what variable actually can prove the accuracy of a year's warranty PERFORM THE CALCULATIONS HISTORY 2 CALCULATE THE RATIO FOR EACH YEAR, ONTAINING Y and X FROM TABLE ABOVE AVERAGE DIVO Sheet1 Ready 100 stv MacBook Pro X Calibri (Body) 11 AA General Wrap Text lllllll til I BIU A Merge & Center $ % IM IM fx D H M B. PERFORM THE CALCULATIONS HISTORY 1 2 WAX CALCULATE THE RATIO FOR EACH YEAR, OBTAINING Y and X FROM TABLE ABOVE AVERAGE STO DEV OIV/01 DIV/01 ENTER THE CELL REFERENCE. K141 FOR THE EXPLANATORY VALUE X TO APPLY TO THE AVERAGE RATIO AND STANDARD DEVIATON ESTIMATED WARRANTY EXPENSE YX] DIV/01 1 standard deviation limits Lower Upper DIVA IV/ Tolerable interval c. DRAW AUDIT CONCLUSIONS Assume that $500,000 is the maximum tolerablemistatment Wat conclusions recommandations de the above calculations sucrest about Mr's warranty expense for 2016? Sheet1 Ready 100 dtv s MacBook Pro SC S