Estimation

Assignment 1 To investigate the effects of the land size (lotsize)and house size (sqrft) on the house price (price) in a particular suburb, the following model log()=0+1log()+2log()+ is used. a) What is the meaning of 1in this model? b) Explain why you would (or would not) expect that 1>0. c) Explain the meaning of the zero-conditional-mean assumption for this model. d) Download the description file “hprice1.des” and data file “hprice1.raw” from the course website

Case 12-7 Facts: Rossi Inc.: Asbestos Litigation Liability: The cost of settlement and defensed costs relating to currently pending claims and future claims for losses incurred to date. Liabilities recorded per/as at Dec 31. 2009 2008 2007 Rossi Inc. $962m $1,055m $469m Thompson (External Specialist) $1124m $1,055m Internal Actuarial Specialist $907m, $1,184m, and $1,514m The 2007 claim estimate is projected through 2011. The 2008 and 2009 estimate are projected through 2017

“Crocs, Inc.” (UVA-F-1589) 1. Which of the comparable companies appears to be a good match to Crocs at the time of the case? Which would be a good match in five years? Use these multiples to provide additional estimates of the value of Crocs (in other words, calculate a value for Crocs using a current multiple, and calculate a value for Crocs using Yeung’s cash flow model but with a terminal value based on a multiple). Using EV to EBITDA multiple: - Current Crocs’ multiple is 27.74. Comparable

Chapter 5 Case Study 5.1 Overview (study area) The 220/66/11 kV SRS Chitradurga substation located near Chitradurga, old Bangalore road, Karnataka, India has been chosen for adequacy analysis. This SRS substation as a capacity of 220kV and it is step down to 66 and 11 kV using step down transformers. The single line diagram of 220/66/11 kV SRS Chitradurga substation is shown in the figure 5.1 Figure 5.1: Single line diagram of 220/66/11 kV SRS Chitradurga substation. The main supply for this substation

due to the industry practice of recognizing product recall losses at the time of sale but the reasonableness of these estimates cannot be determined based on the information provided in the case. For the major campaigns, however, it appears the estimation is not met. From 2001-2004, it appeared that recall losses were increasing at a predictable rate of $500,000/year plus the increase of the prior year. However, during 2005 and 2006, the costs increased at unpredictably high rates. This shows unpredictability

Danle Corporation – Case 10-5 Discuss whether you believe that the conclusion reached by Danle to omit disclosure regarding to the class-action litigation was appropriate for the year ended December 31, 2009. In our opinion, it was not appropriate for Danle Corporation to omit disclosure relating to the class action lawsuit for the year ended December 31, 2009. First, it must be noted that ASC 450-20-25-2 indicates the following: 25-2 An estimated loss from a loss contingency shall be

“professional consultants should be selected on a basis which properly recognises quality as well as price” This selection model is important because in order for a project to be successful, a compatible team needs to be put together. The mode of estimation that is suitable for this stage is based on the approximation technique of functional unit rate. The ball park budget cost is refined by using a past but similar project contract price whilst also taking into account its closest location and date

(1994) states the selection process of professional consultants is on the basis for recognition of quality as well as price " This selection model is important because in order for project success , a compatible team needs building . The mode of estimation that is suitable for this stage uses the approximation technique of functional unit rates. The ball park budget cost would be refined by using a past but similar project contract price whilst also taking into account its site locality and date.

TRUEPLANNING® FOR MORE COMPETITIVE BIDDING ON ADVANCED TECHNOLOGY PROJECTS Challenge: Verify cost estimates to ensure bids are priced to win but are accurate and profitable for each stakeholder in a project’s supply chain. Solution: Create a Cost Estimation Framework (CEF) that uses TruePlanning® top-down, parametric estimating to set cost targets with TrueMapper® feature to cross-check estimators’ bottom-up estimates in Excel based on Work Breakdown Structure (WBS). Improve knowledge capture by creating

(a)The existing walk-in cooler inside FCI food service is more than 70 years old. The R- Value insulation on the walls are very poor, parts are not available due to the age for repairs. Needs to be replaced with an energy efficient model. (b) Due to the age, steam and condensate lines inside the buried utility tunnel are leaking, flooding the channel, cracking up the concrete sidewalks and toilets inside the CMS building. This buried tunnel feeds steam from the Unicor building to the CMS. It is affecting