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Tutor profile: Shishir C.

Inactive
Shishir C.
Accountant, Research Analyst, Adjunct Instructor
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Questions

Subject: Economics

TutorMe
Question:

What do you understand by law of diminishing marginal utility?

Inactive
Shishir C.
Answer:

Simply said, as we increase the consumption, the benefit(utility) we derive from our each consumption decreases.

Subject: Statistics

TutorMe
Question:

How does correlation differ from covariance?

Inactive
Shishir C.
Answer:

Both of them show relation between two variables. However, the major difference is that while covariance shows only the direction of the relation, covariance also shows the magnitude of the relationship between two variables.

Subject: Finance

TutorMe
Question:

How do you project the growth rate while performing financial projection?

Inactive
Shishir C.
Answer:

If it is a company without historical data, make sure that the growth rate is not above the GDP growth rate of the economy. However, under conditions such that the sales contract has been executed, the appropriate growth percentage can be used. If it is a company with historical data, Steps: Calculate the growth percentage of past 4-5 years data. Take average of the growth percentage. Increase the last available sales (or any other figures) with the average growth percentage.

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