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I don’t understand how to use the ANOVA tables to work out “How much extra ticket sales are generated per 1,000 population” and “How much additional profit would be generated if $250,000 were spent on automated ticket barrier investment?”
I have done statistics therefore yes i do know about having to plug in the coefficients using the results of the ANOVA, however i can only use that information to work out the predicted sales i.e. Y.
I don’t understand how they’re asking for the impact on profit when the variable in question is SALES not PROFIT.
Please help meI am not able to look at this until Tuesday – in the meantime, I can only suggest you go back to the BBQ illustration and read all that is said there about how to use and interpret the spreadsheet.
If you read the instructions/information on the first page of the assessment – the page from which you download the spreadsheet – it tells you what the independent variables are. The change in the relevant X x its coefficient is the change in Y.
And change in revenue is change is the change in contribution is the change in profit if you don’t have identified variable costs of sale or stepped fixed costs (is assumed knowledge of MA/F2 and PM/F5).You should find my posts on this thread useful https://opentuition.com/forum/ask-acca-tutor-forums/acca-ethics-and-professional-skills-module/
Dear Sir, i din’t understand this sentence of your,
”And change in revenue is change is the change in contribution is the change in profit if you don’t have identified variable costs of sale or stepped fixed costs”.
In the original post the student wrote “I don’t understand how they’re asking for the impact on profit when the variable in question is SALES not PROFIT.”
I was pointing out that in this scenario the $ impact on sales goes “straight to the bottom line” and is the same $ impact on profit. Because there is no variable cost of sales, the increase in sales volume does not have an increased cost of sale (i.e. the change in sales revenue will also be the change in contribution). Then – because the difference between contribution and profit is fixed cost – the impact on profit will be the same as the impact on contribution, unless there is a step in fixed costs (which a scenario would have to indicate – you could just guess it). This is just “basic” cost/management accounting from MA (F2).
Am one of those who have struggled with Unit 7 but am grateful to the tutor for reiterating the importance of ethics and professionalism and encouraging us to utilise skills from previous modules. Had to listen to a few videos on youtube on how to do multiple regression analysis via excel and thereafter aced the assessment. I was simply not applying my mind to it and once l did the assessment after refreshing via the videos it was much more understandable. It is indeed a joy and fulfilling to have done it myself. All the best.
@Joel thank you for your words of encouragement to fellow students – I would say that actually going through the illustration in the unit carefully is sufficient to complete the module – and that you don’t have to be able to “do” the multiple regression itself. Though if you have learnt more about the technique is all well and good!
So for students who might be put off by the mere mention of “multiple regression analysis” – you should be thinking as “business leaders” – i.e. someone provides you with data/information/technical analysis – you have to be able to interpret it – you are not expected to “do” it.
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