Fashion Institute Of Technology MA 321 DATA ANALYSIS FOR BUSINESS APPLICATIONS 3. Big Data and Prediction Models Quiz

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Big Data and Prediction Models TOTAL POINTS 10 1.Question 1 Which of the following variables are included in the Modified Jones model? (check all that apply) 1 point o Gross Property, Plant, and... Equipment o Cash dividends o Accruals o EBITDA o Unicorns and rainbows 2.Question 2 Below is selected data for Swedish Vallhund AB. Calculate normal accruals for Swedish Vallhund using this data. Accruals/ Prior TA Chg Cash Revenue/ Prior TA PPE/ Prior TA a (Intercept) b (ChgCashRev) c (PPE) 0.100 0.050 0.400 -0.1 0.4 -0.2 1 point o 0.550 o 0.260 o -0.160 o 0.100 o -0.070 3.Question 3 Which of the following companies is the most likely suspect for managing earnings lower This Year? Company Year Normal Accruals Discretionary Accruals Spaniel Craig Co Two Years Ago -0.052 0.024 Spaniel Craig Co Last Year -0.068 -0.014 Spaniel Craig Co This Year -0.238 0.139 Sean Collie Inc Two Years Ago -0.082 -0.013 Sean Collie Inc Last Year -0.020 -0.053 Sean Collie Inc This Year 0.080 -0.143 Pinscher Brosnan Ltd Two Years Ago -0.038 0.310 Pinscher Brosnan Ltd Last Year -0.049 0.188 Pinscher Brosnan Ltd This Year -0.044 0.246 1 point o Both Sean Collie Inc and Pinscher Brosnan Ltd o Pinscher Brosnan Ltd o None of the companies o Spaniel Craig Co o Sean Collie Inc 4.Question 4 Which of the following actions could affect a company’s amount of discretionary expenditures? (check all that apply) 1 point o Delay a planned employee training program for the next period o Increase the expected percentage of sales this period that will be uncollectible o Change amortization assumptions this period o Increase sales growth during the current period o Cancel all top executive travel plans for the rest of the period 5.Question 5 Below is selected data for Siberian Husky ZAO. Calculate discretionary R&D for Siberian Husky using this data. Year Total Assets R&D Normal R&D Last Year 10000 900 -0.006 This Year 15000 1000 0.060 o 99.940 o -0.050 o -0.053 o 0.007 o 0.070 6.Question 6 Which of the following companies is the most likely suspect for managing earnings higher This Year to meet or beat an earnings target? Company Yea r Discretionar y R&D Distanc e (R&D) YoYR& D Q1 YoYR& D Q2 YoYR& D Q3 YoYR& D Q4 Chihuahu a Eccleston Co Las t Yea r 0.052 0.027 61.1% 68.8% 10.3% 30.5% Chihuahu a Eccleston Co Thi s Yea r -0.030 0.367 31.1% 30.2% 14.8% 6.8% Tom Boxer Inc Las t Yea r 0.001 0.756 13.0% 2.0% 1.1% 11.1% Tom Boxer Inc Thi s Yea r 0.082 0.935 40.3% 46.1% 58.4% 73.8% David Terrier Ltd Las t Yea r -0.190 0.294 18.4% 38.4% 44.5% 31.7% David Terrier Ltd Thi s Yea r 0.180 -0.634 16.3% 33.9% 52.8% 35.7% Mutt Smith Corp Las t Yea r -0.019 -0.033 0.7% 3.5% 13.1% 12.7% Mutt Smith Corp Thi s Yea r -0.054 -0.007 11.8% 8.3% 2.4% 1.4% o Mutt Smith Corp o David Terrier Ltd o Tom Boxer Inc o Chihuahua Eccleston Co o Everyone except Tom Boxer Inc 7.Question 7 For which of the following ratios would an increase in the value of the ratio lead to an increase inthe Beneish M-score? (check all that apply) o Total Accruals to Total Assets (TATA) o SG&A Index (SGAI) o Sales Growth Index (SGI) o Asset Quality Index (AQI) o Leverage Index (LVGI) 8.Question 8 Which of the following companies are potential manipulators according to the Beneish MScore? (check all that apply) Company M-Score Arcanine Inc -0.51 Growlithe Ltd -2.63 Houndoom Co -1.42 Lillipup Corp -3.19 Smeargle Pty -1.98 1 point o Houndoom Co o Smeargle Pty o Lillipup Corp o Arcanine Inc o Growlithe Ltd 9.Question 9 Who first discovered Benford’s Law? 1 point o Frank Benford o Dan Amiram o Zahn Bozanic o Simon Newcomb o Ethan Rouen 10.Question 10 Below is data from five companies’ financial statements. Which of the following companies are potential manipulators according to Benford’s Law? (check all that apply) (Hint: get a calculator so you can do square roots!) Company Number of Leading Digits Kolmogorov-Smirnov statistic Briard Childress Ltd 230 9.9% Bulldog Grant Corp 145 6.2% Dachshund Green Inc 91 13.2% Lhasa Apso Frazier Co 124 13.2% Mi-Ki Tice Cie 145 36.2% 1 point o Bulldog Grant Corp o Lhasa Apso Frazier Co o Mi-Ki Tice Cie o Briard Childress Ltd o Dachshund Green Inc [Show More]

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