Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maggie owns several high - end boutique retail stores, and she anticipates her inventory value will be $ 3 . 1 million dollars in 2

Maggie owns several high-end boutique retail stores, and she anticipates her inventory value will be $3.1 million dollars in 2023. As part of the risk management process, she wants to estimate the number of inventory thefts her business will incur in 2023 based on her anticipated inventory value. Maggie has collected inventory theft data and inventory value data for her business for the years 2008 to 2022. If Maggie undertakes a regression analysis using these data, what is the number of estimated theft claims she will incur in 2023?
Year Inventory Value Number of Thefts
2008 $ 400,000.0022
2009 $ 490,000.0025
2010 $ 525,000.0032
2011 $ 650,000.0034
2012 $ 745,000.0041
2013 $ 920,000.0044
2014 $ 1,100,000.0049
2015 $ 1,352,000.0053
2016 $ 1,485,000.0059
2017 $ 1,923,000.0068
2018 $ 2,100,000.0072
2019 $ 2,352,000.0081
2020 $ 2,500,000.0092
2021 $ 2,753,000.0099
2022 $ 2,917,000.00102

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

7th Edition

0136015867, 9780136015864

More Books

Students also viewed these Finance questions