The Power of Crowdfunding: Unlocking Business Opportunities

Abstract

Assignment #01 Due 6/20 [Name] 0 [Name] 100 Pts Avail. [Name] Pts Avail. [Name] 1   30 0 3   13 0 1a 5 0 3a 5 0 1b 5 0 3bi 2 0 1c 5 0 3bii 2 0 1d 5 0 3biii 2 0 1e 5 0 3biv 2 0 1f 5 0 4 4 10 0 2   4 0 5 5 10 0 2a 2 0 6   12 0 2bi 1 0 6a 2 0 2bii 1 0 6b 3 0 6c 5 0 6d 2 0 7 7 21 0 In terms of raising funds to conduct operations, or to start a business there are more choices today than there were even five years ago. A large part of this variety is due to the creation of “crowdfunding” platforms. As is usually the case with Investopedia.com they offer a useful definition https://www.investopedia.com/terms/c/crowdfunding.asp If have developed answers that rely on the work of others, you must cite them – citations do not have to be in “traditional style” but they should at least be a url that the instructor can find and check. Write a short two paragraph explanation of how crowdfunding works. In terms of Figure 1 of Section 2.1, in which part of the graph would you characterize “crowdfunding”. What are two of the main the advantages to the borrower of using a type of crowdfunding? What are two of the main the advantages to the lender of using a type of crowdfunding? How might the problem of adverse selectin arise in crowdfunding? Explain at least 1 instance that confronts either/or the lender and/or borrower. How might the problem of moral hazard arise in crowdfunding? Explain at least 1 instance that confronts either/or the lender and/or the borrower. In the data file ASSGN01.xlsx there is a data set very similar to the data set in the regression refresher lesson formerly called “Pre-Course Excel_Stats” of the course. In that lesson thee was sales data and price and income data for a number of years. Find this data in the tab “Prob2”. The data is for the sales of powerd chess boards and has information on price and income. Here the income is measured in 000.s of dollars, not dollars. The first income number appears as 34.522 meaning $34,522. Using this data do the following: Estimate the regression UnitsSold = B0 + B1*P + B2*Income. Write out your equation algebraically in the space provided below. Hint: The estimate of B0 is 2746.825. Use 2 or 3 decimal places not more and please consistently use that number of decimal places. Suppose that you are interested in forecasting sales during the first quarter of 2020 using the data available up until that point. Produce two separate estimates and show how the estimates are arrived at. The first estimate keeps price fixed at its 2019Q4 value and increases income by 3% from its 2019Q4 value. The second estimate keeps price fixed at its 2019Q4 value and decreases income by 3% from its 2019Q4 value. In the file ASSGN01.xlsx there is a tab called AltCurrency. In that tab you will find...