Boeing Case Study

3183 Words Apr 22nd, 2013 13 Pages
Introduction
In this case Boeing faces a number of challenges in determiningthe viability of bringing forth the 7E7 aircraft series. Aircraft manufacturersbringing forth a new product has to take extra care since a miss in this assessment can place a company in a position to fail the result of huge cash outflows required. Boeing faced stiff competition from French based Airbus and had not brought forth a successful new product in recent years. Since the September 11th attacks travel had taken a drop in general and Boeing was making assumptions regarding future needs and opportunities. This included the willingness of travelers to pay 5% more for efficiency and the increase of hub and spoke travel for airlines requiring flexibility in
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This beta is calculated using 40 years of data from Jan 2nd, 1962 to Dec 30th, 2002 (Because the data for historical price of Boeing before 1962 is not available) SUMMARY OUTPUT | | | | | | | | | | | | | | | | | Regression Statistics | | | | | | | | Multiple R | 0.47008689 | | | | | | | | R Square | 0.22098168 | | | | | | | | Adjusted R Square | 0.22061697 | | | | | | | | Standard Error | 0.04211976 | | | | | | | | Observations | 2138 | | | | | | | | | | | | | | | | | ANOVA | | | | | | | | | | df | SS | MS | F | Significance F | | | | Regression | 1 | 1.074933 | 1.07493 | 605.9124 | 5.50E-118 | | | | Residual | 2136 | 3.789422 | 0.00177 | | | | | | Total | 2137 | 4.864355 | | | | | | | | | | | | | | | | | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Intercept | 0.00185857 | 0.000913 | 2.03574 | 0.0419 | 6.82E-05 | 0.00365 | 6.82E-05 | 0.00365 | X Variable 1 | 1.06941054 | 0.043445 | 24.6153 | 5.50E-118 | 0.984212 | 1.15461 | 0.98421 | 1.15461 |

According to the regression summary output above, the estimate beta for Boeing is approximately 1.07. One important point to note is that this is the…