CMA Study Group

This message has been cross posted to the following Discussions: Academic Forum and CMA Study Group .
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Good Morning,

I am working my way through the CMA Part 1 using Wiley Learning System and have hit a brick wall in the Topic Area surrounding Simple Linear Equations. A table and subsequent graph are provided with both X (Marketing) and Y (Sales) data, very straight forward at this point.

A further table is provided showing Coefficents, T-Value, Standard Error with the relevant answer for the Intercept and the Marketing Costs, which are then used to populate the Equation of Y = a + bX.

I have no problem with the equation itself but my issue is that there is no coverage on how the Coefficients, T Value were calculated. I went online and used a Simple Linear Regression Calculator which provided same answer as Text Book.

Question is, are CMA Students expected to calculate the 'a' and 'b' values manually using the individual formulas for 'a' (amount of Y when X=0) and 'b' (slope of line/regression coefficient)? The reason I ask that it just blanks it in book and only gives the table showing results and when I go online and search elsewhere its quite a detailed exercise if you have to work it all out manually with pen, paper and calculator and not use the actual 'Regression Calculator' that does all the advanced calcs in the background?

Hopefully someone out there understands my question and if so please help?

Regards
Craig

Hi,

I think you need to review the regression topic from the statistics point of view not from the CMA book 
it will help you understand regression topic include the other benchmarks associated with it 

Please check this link for review
https://www.khanacademy.org/math/probability/regression/regression-correlation/v/r-squared-or-coefficient-of-determination

Thanks


-------------------------------------------
Ashraf Aly Deyab
Chief Financial Officer
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Original Message:
Sent: 05-12-2014 11:04 PM
From: Craig Gallacher
Subject: Linear Regression

This message has been cross posted to the following Discussions: Academic Forum and CMA Study Group .
-------------------------------------------
Good Morning,

I am working my way through the CMA Part 1 using Wiley Learning System and have hit a brick wall in the Topic Area surrounding Simple Linear Equations. A table and subsequent graph are provided with both X (Marketing) and Y (Sales) data, very straight forward at this point.

A further table is provided showing Coefficents, T-Value, Standard Error with the relevant answer for the Intercept and the Marketing Costs, which are then used to populate the Equation of Y = a + bX.

I have no problem with the equation itself but my issue is that there is no coverage on how the Coefficients, T Value were calculated. I went online and used a Simple Linear Regression Calculator which provided same answer as Text Book.

Question is, are CMA Students expected to calculate the 'a' and 'b' values manually using the individual formulas for 'a' (amount of Y when X=0) and 'b' (slope of line/regression coefficient)? The reason I ask that it just blanks it in book and only gives the table showing results and when I go online and search elsewhere its quite a detailed exercise if you have to work it all out manually with pen, paper and calculator and not use the actual 'Regression Calculator' that does all the advanced calcs in the background?

Hopefully someone out there understands my question and if so please help?

Regards
Craig

Thanks Ashraf

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Craig Gallacher
Vice President
Digiphoto Entertainment Imaging
Dubai
United Arab Emirates
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Original Message:
Sent: 5/13/2014 1:59:16 AM
From: deyabash@...
Subject: RE:Linear Regression

Hi, I think you need to review the regression topic from the statistics point of view not from the CMA book  it will help you understand regression topic include the other benchmarks associated with it  Please check this link for review https://www.khanacademy.org/math/probability/regression/regression-correlation/v/r-squared-or-coefficient-of-determination Thanks ------------------------------------------- Ashraf Aly Deyab Chief Financial Officer -------------------------------------------
Original Message: Sent: 05-12-2014 11:04 PM From: Craig Gallacher Subject: Linear Regression This message has been cross posted to the following Discussions: Academic Forum and CMA Study Group . ------------------------------------------- Good Morning, I am working my way through the CMA Part 1 using Wiley Learning System and have hit a brick wall in the Topic Area surrounding Simple Linear Equations. A table and subsequent graph are provided with both X (Marketing) and Y (Sales) data, very straight forward at this point. A further table is provided showing Coefficents, T-Value, Standard Error with the relevant answer for the Intercept and the Marketing Costs, which are then used to populate the Equation of Y = a + bX. I have no problem with the equation itself but my issue is that there is no coverage on how the Coefficients, T Value were calculated. I went online and used a Simple Linear Regression Calculator which provided same answer as Text Book. Question is, are CMA Students expected to calculate the 'a' and 'b' values manually using the individual formulas for 'a' (amount of Y when X=0) and 'b' (slope of line/regression coefficient)? The reason I ask that it just blanks it in book and only gives the table showing results and when I go online and search elsewhere its quite a detailed exercise if you have to work it all out manually with pen, paper and calculator and not use the actual 'Regression Calculator' that does all the advanced calcs in the background? Hopefully someone out there understands my question and if so please help? Regards Craig

Craig, The most complicated calculation required in CMA is using the high-low method. Questions may include using data from a situation to "plug into" Y = a + b*X. Candidates may be required to interpret the meanings of the X, Y, a, and b in Y = a + b*X, and the meaning of Rsq, and t-values.  See LOS for Part 1, Section A, topic 2.

It is difficult to calculate the a and b using simple calculators, not easy using Texas Instrument BA II Plus, so this is NOT required on CMA exam. It can be done in Excel, and of course in stand-alone statistics programs like SAS and SPSS.

Please contact me offline if you need help with actual business application.

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Robert Ewalt CMA, CFM
Manager, Exam Development ICMA
Montvale, NJ
United States
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Original Message:
Sent: 05-13-2014 01:59 AM
From: Ashraf Aly Deyab
Subject: Linear Regression

Hi,

I think you need to review the regression topic from the statistics point of view not from the CMA book 
it will help you understand regression topic include the other benchmarks associated with it 

Please check this link for review
https://www.khanacademy.org/math/probability/regression/regression-correlation/v/r-squared-or-coefficient-of-determination

Thanks


-------------------------------------------
Ashraf Aly Deyab
Chief Financial Officer
-------------------------------------------






Original Message:
Sent: 05-12-2014 11:04 PM
From: Craig Gallacher
Subject: Linear Regression

This message has been cross posted to the following Discussions: Academic Forum and CMA Study Group .
-------------------------------------------
Good Morning,

I am working my way through the CMA Part 1 using Wiley Learning System and have hit a brick wall in the Topic Area surrounding Simple Linear Equations. A table and subsequent graph are provided with both X (Marketing) and Y (Sales) data, very straight forward at this point.

A further table is provided showing Coefficents, T-Value, Standard Error with the relevant answer for the Intercept and the Marketing Costs, which are then used to populate the Equation of Y = a + bX.

I have no problem with the equation itself but my issue is that there is no coverage on how the Coefficients, T Value were calculated. I went online and used a Simple Linear Regression Calculator which provided same answer as Text Book.

Question is, are CMA Students expected to calculate the 'a' and 'b' values manually using the individual formulas for 'a' (amount of Y when X=0) and 'b' (slope of line/regression coefficient)? The reason I ask that it just blanks it in book and only gives the table showing results and when I go online and search elsewhere its quite a detailed exercise if you have to work it all out manually with pen, paper and calculator and not use the actual 'Regression Calculator' that does all the advanced calcs in the background?

Hopefully someone out there understands my question and if so please help?

Regards
Craig