Information Systems Essay Example | Topics and Well Written Essays - 2000 words - 2

Information Systems - Essay Example It makes switching cost or consideration of an alternative costly that it discourages customers to switch to another system. The classic example we can cite is SAP procurement system. The program is being used by many big businesses across the globe that includes industry leaders such as BMW, Ericsson, BASF Corp., Audi, Burger King, just to name a few. SAP markets its product to its customers by stating that it could â€Å"boost contract spending and and enforce compliance with procurement guidelines† (SAP, 2012). The â€Å"contract boost spending† just meant that its potential customers will have more business because it will lock in their clients to their business and will make it extremely costly for them to find an alternative because the present system (using SAP) reduces procurement cost by â€Å"automating, simplifying and accelerate the business’ procure to pay process for goods and services (SAP, 2012). It thus emphasize operational efficiency that the consideration of an alternative would be prohibitive in terms of cost, human resource and time spent looking for another supplier because SAP will already streamline the purchase of goods and services. In other words, the system (SAP) will make the products and services exchanged between suppliers and customers to be cost effective or cheap as long as the customer will buy solely from the supplier that uses SAP. To further simplify how informational technology lock in the relationship between the supplier of goods, services or information and its customer, we can further cite the popular computer tablet of Amazon which is the Kindle Fire. Kindle Fire makes a good case of how a supplier locks in or lures its customer it uses this to differentiate itself from its dominant competitor, iPad of Apple. Amazon knows that it has the advantage of deep informational database over Apple which is its online bookstore Amazon and would like to capitalize on this advantage to take away Apple iPadà ¢â‚¬â„¢s market share on the computer tablet business. Instead of offering numerous apps and competing with the technical features of iPad which Amazon knows it cannot measure up, Amazon instead offered numerous books and magazines for free with their Kindle Fire and will sell the same if a customer will purchase them using the iPad. It is short of saying that many books and magazines are free if you buy Kindle Fire and it will cost you a lot if you buy iPad. In addition, Amazon also offer their Kindle Fire way cheaper than Apple’s iPad and market it more as a book and magazine reader to differentiate from iPad. Above all, Amazon also offers unlimited cloud storage for books and magazines for free that was procured from Amazon. In the same vein, the same services of cloud storage will cost a lot if customers will buy it from their iPads because they have to buy the books at premium prices from Amazon which were free with Kindle and they have to pay again if they want to save it in Amazon’s cloud storage. In the examples stated, it showed that informational technology is not just used to make business efficient, but also made as a tool to keep existing customers and make the alternative costly for them. Information technology will not only make switching costs expensive but could also be used as a strategic capability that would serve as a barrier to new entrants into its markets. The classic example we can use to illustrate how companies make

Optical systems Essay Example | Topics and Well Written Essays - 3750 words

Optical systems - Essay Example This report also discusses the future prospects of this technology. As shown in figure 1, plastic optical fiber is huge central step-index fiber and its diameter is equal to 1 mm (millimeter). Hence, its huge size allows it to easily combine lots of light coming from various connectors and sources with less precision. In this scenario, the prices of standard connector are between 10% and 20% for glass fibers as well as closure is also as easy as cutting with a razor blade. In view of the fact that it is coated with the plastic so it makes it easy and rugged to install and connect deprived of fear of loss or damage. (The FOA, 2008; Paschotta, 2014) However, one of the major drawback of this media is that its performance is much lower than glass fiber. Additionally, its bandwidth is limited as well as it has a connection loss of approximately 0.15-0.2 dB per meter at 650 nm. On the other hand, it works fine when it is used for running short connection, for instance within a place for desktop connections up to 50 meters or inside of instruments. In this scenario, its most excellent usage is seen in automobile industry in which it has expanded a position with the innovative Flexray and MOST networks (The FOA, 2008; Paschotta, 2014). Its proven effectiveness for small distance connections make it an excellent choice for desktop LAN connections. For such connections, it can be installed in a few minutes with negligible training and tools. In future, it can be expected that its bandwidth will exceed to considerable level. However, its cost is reasonable as compared to copper. In fact, standards groups are currently looking at various choices for plastic fiber optics. It is believed that POF can be the following practical desktop connection (The FOA, 2008). Normally, the transmission is carried through fiber optic systems in the digital format. In other words, this transmission is sent and

Student Assessment Essay Example for Free

Student Assessment Essay A current policy issue that is plaguing our educational system is the emphasis put on student assessments. Teachers are at odds in their classrooms on whether to teach the necessities that students will need to be productive in our society, to simply teach what will be tested on state and federally mandated assessments, or both. Teachers are forced to find a balance within their instructions due to the time restraints that stand in their way. When teachers are able to find this balance and present all the concepts that are included in assessment, plus all other concepts, the results from the assessments can be very beneficial to their classrooms. Assessment results have important implications for instruction. The primary aim of assessment is to foster learning of worthwhile academic content for all students (Wolf, Bixby, Glenn, Gardner, 1991). School communities use assessment results in a formative way to determine how well they are meeting instructional goals and how to alter curriculum and instruction so that goals can be better met. But if what schools assess and how schools assess do not match what is taught and how it is taught, then the results are meaningless, if not potentially harmful. Theres also potential for harm when decisions affecting students futures are being made based on results of assessments made with tools that are not appropriate for the purpose. Some schools are attempting to change assessment to match the content and format of instruction, and are therefore relying more upon alternative assessment. Alternative assessments include performance-based assessment, portfolios, student-designed assessments, etc. , and are considered by many educators to be more reflective of new curricular goals and methods of instruction. Some educators view alternative assessment as a better way to determine how well students are learning traditional forms of assessment like multiple choice tests. Alternative forms of assessment might best serve some of these purposes while more traditional forms could still serve others. Regardless of the purpose, however, the form of assessment used must reflect a teacher’s instructional goals and must be of high technical quality. (White Fredericksen, 1994) Alternative forms of assessment require knowledge and skills that most teachers have not had the opportunity to learn, which in fact poses another issue with these types of classroom assessments. Without the knowledge and skills, teachers will be doing their students a disservice by conducting faulty assessments. Providing teachers with the time that is essential for learning is necessary to making changes in assessment practices. Teachers need time to produce and implement the assessments. Teachers also need time to work with one another to share ideas and reach consensus because integrating instruction and assessment requires coordination. Alternative assessment will not be effective if it is added to the list of responsibilities for teachers. (North Central Regional Educational Laboratory, 1991) When assessment results are used to make important decisions, there is a danger that instruction will narrowly focus on what is assessed while other important curricular goals and content are neglected (Romberg, Zarinnia, Williams, 1989). All assessments include only a sample of the total content contained within a curriculum. Critics of multiple-choice tests, for example, suggest that the skills usually assessed by multiple-choice testing become the focus of instruction at the expense of more substantial content. Alternative assessment presents a solution to this situation by ensuring that the content of the assessment matches the most important content in the curriculum. However, regardless of how much the content of an assessment is improved, when teachers narrowly focus on what is tested, the assessment results will only reveal the students learning of the test content, not whether they could perform a related task in a different environment. For example, if instruction is focused on a skill that is a test requirement, the results of the test will reflect only the students performance in a testing environment, not his/her general ability to perform that skill in everyday settings. This limitation is primarily a concern in large-scale districts or state testing situations where important decisions are based on a limited sample of student performances. The most important factors in determining the technical quality of assessments are the assessments’ reliability, validity, and fairness. If the quality of an assessment is not ensured, grouping practices, and coverage and pacing decisions may be based on invalid estimates of students capabilities. Sometimes grouping decisions can reflect or reinforce racial and socioeconomic inequities, or the decisions might be based on prior achievement that was artificially low due to past limited opportunities to learn. If all students have not had an equal opportunity to learn, then grouping and pacing decisions based on test results are unfair. (North Central Regional Educational Laboratory, 1991) Good assessment requires minimizing factors that could lead to misinterpretation of results. The criteria for meeting this requirement are reliability, validity, and fairness. Reliability is defined as an indication of the consistency of scores across evaluators or over time. An assessment is considered reliable when the same results occur regardless of when the assessment occurs or who does the scoring. There should be compelling evidence to show that results are consistent across raters and across scoring occasions. (Elliott, 1994) Validity is defined as an indication of how well an assessment actually measures what it is supposed to measure. Three aspects of an assessment that must be evaluated for validity are tasks, extraneous interference, and consequences. Every assessment requires students to complete some task or activity. A valid task should reflect actual knowledge or performance, engage and motivate students to perform to the best of their ability, be consistent with current educational theory and practice, be reviewed by experts to judge content quality and authenticity. Extraneous interference occurs when there is something in the assessment that might get in the way of students being able to demonstrate what they know and can do. A valid assessment does not require knowledge or skills that are irrelevant to what is actually being assessed. Some examples of these might include students’ ability to read, write, role-play, or understand the context, personality, physical limitations, or knowledge of irrelevant background information. Valid assessments also minimize unintended negative consequences. Negative effects of assessments might include restricting curricula to what can be easily assessed, communicating unintended messages about power, control, or social status, and fostering narrow images of the nature of a particular discipline. (Elliott, 1994) Fairness means that an assessment should allow for students of both genders and all backgrounds to do equally well. All students should have equal opportunity to demonstrate the skills and knowledge being assessed. The fairness of the assessment is jeopardized if bias exists either in the task or in the rater. (Elliott, 1994) In this atmosphere of reform, student assessment is the centerpiece of many educational improvement efforts. Policymakers hope that changes in assessment will cause teachers and schools to do things differently. Assessment reform is viewed as a means of setting more appropriate targets for students, focusing staff development efforts for teachers, encouraging curriculum reform, and improving instruction and instructional materials. (Fuchs, 1994) Many educators and policymakers believe that what gets assessed is what gets taught and that the format of assessment influences the format of instruction. Contrary to our understanding of how students learn, many assessments test facts and skills in isolation, seldom requiring students to apply what they know and can do in real-life situations. Standardized tests do not match the emerging content standards, and over-reliance on this type of assessment often leads to instruction that stresses basic knowledge and skills. Rather than encouraging changes in instruction toward the engaged learning that will prepare students for the 21st century, these tests encourage instruction of less important skills and passive learning. (Fuchs, 1994) Since the National Assessment of Educational Progress (NAEP) is the only national representative and continuing assessment of what Americas students know and can do in various subject areas, it seemed to be the most obvious choice for exploration. In exploration of this policy, research will be conducted to find out how affective it is within our country. The terms of this policy requires that assessments be conducted periodically in mathematics, reading, science, writing, the arts, civics, economics, geography, and U. S. history. Because of the issues of assessment, NAEP’s assessment will be probed to find if they are reliable, valid, and fair being that it serves as a type models for all other assessment practices. Under the current structure, the Commissioner of Education Statistics, who heads the National Center for Education Statistics in the U. S. Department of Education, is responsible by law for carrying out the NAEP project. The National Assessment Governing Board (NAGB), appointed by the Secretary of Education but independent of the Department, sets policy for NAEP and is responsible for developing the framework and test specifications that serve as the blueprint for the assessments. The National Assessment Governing Board develops the frameworks that provide the theoretical basis for the assessment and specific direction for what kinds of knowledge and skills should be assessed, how the exercises should be designed, and how student responses should be scored. These frameworks are the result of comprehensive efforts in which teachers, curriculum experts, policymakers, and members of the general public worked to create a unified vision of how a particular subject ought to be assessed. This vision is based on current educational research on achievement and its measurement, and good educational practices. (National Center for Education Statistics) References Berk, R. A. (1993). National Trends in Student and Teacher Assessment: Issues in Performance Assessment. Retrieved January 17, 2008 from http://nesonline. com/PDFs/1993_05Berk. pdf Elliott, S. N. (1994). Creating meaningful performance assessments: Fundamental concepts. Reston, VA: The Council for Exceptional Children. Fuchs, L. S. (1994). Connecting performance assessment to instruction. Reston, VA: The Council for Exceptional Children. National Center for Education Statistics. NEAP Overview. Retrieved on January 20, 2008 from http://www. nces. ed. gov/nationsreportcard/about/ North Central Regional Educational Laboratory, PBS Elementary/Secondary Service, in partnership with the National Center for Research on Evaluation, Standards, and Student Testing (UCLA/CRESST) (1991). Schools That Work: The Research Advantage. Part IV: Alternatives for Measuring Performance. Oak Brook, IL: Authors. Romberg, T. , Zarinnia, A. Williams, S. (1989). The Influence of Mandated Testing on Mathematics Instruction: Grade Eight Teachers Perceptions. In Romberg, T. Wilson, L. (1992, September), Alignment of Tests with the Standards, Arithmetic Teacher, 40 (1), 18-22. White, B. Y. Fredericksen, J. R. (1994, Fall). Using Assessment to Foster a Classroom Research Community. Educator, 19-24. Wolf, D. , Bixby, J. , Glenn, J. , III, Gardner, H. (1991). To use their minds well: Investigating new forms of student assessment. Review of Research in Education, 17, 31-74.

A Passage to India Essay -- Literary Analysis

E.M. Forster, born into a middle-class family in London, was a humanist and an English writer famous for his literary works which called attention to the hypocrisy (present in the time in which he lived). In his novel A Passage To India, Forster explores the relationship between and within the Anglo-Indian and Native-Indian communities under British Imperialism and expounds on the sins which its members commit against the humanistic values of sympathy and understanding. Additionally, in A Passage to India Forster reflects the relationship phases which occur between his characters through the use of the three main divisions -- Mosque, Caves, and Temple. The First division Mosque, a Muslim place of worship, is set in the fictional city of Chandrapore and brings about the first stage of human confrontation --Introduction. One of the first introductions Forster makes to the reader is the division of the Indian and British cultures. He does this by describing Indian Chandrapore to be a place where the â€Å"streets are mean, the temples ineffective, and though a few fine houses exist they are hidden away in gardens or down alleys whose filth deters all but the invited guest.† (Forster 3) while describing British Chandrapore â€Å"to be a totally different place. It is a city of gardens. It is no city, but a forest sparsely scattered with huts. It is a tropical pleasaunce washed by a noble river† (Forster 4). The idea of ‘introductions’ is further explored in Dr. Aziz’s visit to the mosque which lets â€Å"loose his imagination..where his body and thoughts have found their home† (Forster 16), whe re the â€Å"many small sounds [of the] English...amateur orchestra...Hindus drumming...owls† (Forster 17), all diverse in nature, echoed through a similar space... ...d apart; the earth didn’t want it, sending up rocks through which riders must pass single file; the temples, the tanks the jail, the place, the birds, the carrion, the Guest House...didn’t want it, they said...’no, not yet,’ and the sky said, ‘No, not there’†(Forster 362). Works Cited Forster, E. M. A Passage To India. New York: Harcourt, Brace and, 1924. Print. "Mosque, Cave, Temple, and a Few Comments on the Weather." Shmoop. Web. 11 Apr. 2012. . "The Structure of E. M. Forster's "A Passage to India"" Your Knowledge Has Value. Web. 11 Apr. 2012. . "A Passage to India." SparkNotes. SparkNotes. Web. 11 Apr. 2012. .

Patriot Act Pro

Pro Patriot Act There are many advantages for expanding governmental surveillance and investigative powers. For instance, there’s the possibility of gaining invaluable information for future attacks, and also the potential for targeting terrorists who may be responsible for such attacks. According to the American Civil Liberties Union (ACLU), â€Å"The FBI does not have to demonstrate probable cause, only declare it has â€Å"reasonable grounds† to suspect that library records may be relevant to an investigation. Supporters of such extreme measures believe in national security over privacy. They would much rather see a terrorist behind bars than protect their personalphone calls or bank accounts. Another claim is that the government wouldn’t investigate ordinary citizens, meaning that the law is exclusive to suspected criminals. Question: Do these claims qualify as being morally right? From the supporter’s perspective the answer is yes. The governmentâ₠¬â„¢s involvement is warranted in order to establish justice and ensure domestic tranquility (Department of Justice).The Act also provides increased funding for victims of terrorist attacks and their families, as well as for the rebuilding of business and infrastructure that are damaged by terrorism. The Patriot Act is divided into 10 separate sections known as â€Å"titles. † Each title contains numerous Sections that further clarify the provisions of the title. The emphasis was on being sure that should another attack be planned, the government would have the power to prevent it from being completed.Section 213 Sneak and Peek Warrants: this provision allows â€Å"sneak and peek† search warrants, which grants authorities authorization to search a home or business without immediately notifying the target of a probe. Investigators still have to explain why they want to delay the search notification and must eventually notify the target about the search (Abramson and God oy 2006). Under this provision the FBI is permitted to enter a home or an office in the absence of the occupant.During this secret investigation, FBI agents are authorized to take photographs, examine computer hard drives, and install a device known as the Magic Lantern. Once installed, the Magic Lantern, records all computer activity not just those transmitted over the internet. > This means FBI is not just searching anyone without a search warrant, the act states that they can search suspects of terror if and only if they have a reasonable reason and it is a terror, different from a crime.

Barbourofelis - Facts and Figures

Name: Barbourofelis (Greek for Barbours cat); pronounced BAR-bore-oh-FEE-liss Habitat: Plains of North America Historical Epoch: Late Miocene (10-8 million years ago) Size and Weight: Up to six feet long and 250 pounds Diet: Meat Distinguishing Characteristics: Large size; long canine teeth; plantigrade posture About Barbourofelis The most notable of the barbourofelids--a family of prehistoric cats perched midway between the nimravids, or false saber-toothed cats, and the true saber-tooths of the felidae family--Barbourofelis was the only member of its breed to colonize late Miocene North America. This sleek, muscular predator possessed some of the largest canines of any saber-toothed cat, true or false, and it was correspondingly hefty, the largest species weighing in at about the size of a modern lion (though more heavily muscled). Intriguingly, Barbourofelis seems to have walked in a plantigrade fashion (that is, with its feet flat on the ground) rather than in a digitigrade fashion (on its toes), in this respect making it seem more like a bear than a cat! (Oddly enough, one of the contemporary animals that competed with Barbourofelis for prey was Amphicyon, the bear dog). Given its odd gait and enormous canines, how did Barbourofelis hunt? As far as we can tell, its strategy was similar to that of its later, heavier cousin Smilodon, aka the Saber-Toothed Tiger, which lived in Pleistocene North America. Like Smilodon, Barbourofelis whiled away its time in the low branches of trees, pouncing suddenly when a tasty bit of prey (like the prehistoric rhino Teleoceras and the prehistoric elephant Gomphotherium) approached. As it landed, it dug its sabers deep into the hide of its unfortunate victim, which (if it didnt die immediately) gradually bled to death as its assassin stalked close behind. (As with Smilodon, the sabers of Barbourfelis may occasionally have broken off in combat, which would have deadly consequences for both predator and prey.) Although there are four separate species of Barbourofelis, two are better known than the others. The slightly smaller B. loveorum (about 150 pounds) has been discovered as far afield as California, Oklahoma and especially Florida, while B. fricki, discovered in Nebraska and Nevada, was about 100 pounds heavier. One odd thing about B. loveorum, which is especially well represented in the fossil record, is that the juveniles apparently lacked fully functional saber teeth, which may (or may not) imply that newborns received a few years of tender parental care before venturing out alone into the wild. Telling against this parental-care hypothesis, though, is that Barbourofelis had a much smaller brain, relative to its body size, than modern big cats, and so may not have been capable of this kind of sophisticated social behavior.

This Financial Audit Report Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2717 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The first section of this financial audit report is to briefly explain the company background of the companies of Bonia Corporation Berhad and Parkson Holdings Berhad. Following by the first section, the second section is to examine the market share price movement of the companies from correlation coefficient and regression line of the best fit, to measure that risky and prediction when invests in market share prices. Through the market share prices movements, efficient market hypothesis and random walk theory have to explain in this report. Don’t waste time! Our writers will create an original "This Financial Audit Report Finance Essay" essay for you Create order Lastly, this report also identifies the methods of security valuation methods which are needed to mention when the author wants to value the share prices of the companies. Besides that, this report also presents important of capital budgeting in decision ruling when appraises investment in projects. With the framework, author has determine the different of security valuation and capital budgeting. Bonia Corporation Berhad Company Background Bonia Corporation Berhad is mainly focuses in fashion retailing, marketing and manufacturing, which has provided high quality and fashion of leather goods. There have 883 sales outlets and 103 boutiques in around the world. The Bonias history was started in 1977 year, which Mr. Chiang Sang Sem, the Bonias founder, and now was Executive Chairman in Bonia Group, had apply Bonia of brand name because of inspired from the artwork of Giambologna, Italy. In 1980, the Bonia Group had succeed became market leader in Malaysia and Singapore and was listed on the Bursa Malaysia, Kuala Lumpur Stock Exchange (KLSE). Then Bonia Group had succeeded expanded and had its subsidiaries company. Now the Bonia Group has succeed added more international brands, which are Pierre Cardin, Braun Bruno, Magli, Buffel, and Renoma to its collection of brands with the gaining of 70% equity in Jeco (Pte) Limited. Corporate Goal The main corporate goal of Bonia Corporation Behad is to be the recognized international brand with lists in the public listed companies in the region. According to Bonia Groups vision, Bonia Group will establish more 30 countries and will focus in 5 countries in 2015 year. Furthermore, Bonia Group forecasts to have 1billion earnings and at least have 12% before the tax in yearly. Financial Reporting and Performance According to the annual report 2011, Bonia Groups profits have increased 28% to RM461.4million with RM54.8 million from contribution of Jeco (Pte) Limited and RM24.0 million in consignment sales Malaysia. Then Bonia Group has earned RM56.5 million before tax with 24% and RM14.8 million before tax in Jeco (Pte) Limiteds contribution. However, there still have losses of RM5.4 million from joint venture business in Vietnam. Future Forecast Apart on Bonia Groups forecasting, Renoma Cafeacute; Gallery has chosen as the master Franchisee from Licensor, Renoma S.T.A.R. for Singapore, Indonesia and Malaysia and launchs 1st concept in 2012 year. Besides, Bonia Group has rebuilt the retail in Vietnam because of arguing with partner. It forecasts will be the temporary because of supporting by Vietnams departmental stores. Bonia Group forecasts to launch first boutique at Grand Indonesia Shopping Town in Jakarta. Parkson Holdings Berhad Company Background Parkson Holdings Berhad is a Malaysia investment holding company which was under Companies Act in 1965 year and has named as Amalgamated Cement Mills Sdn Bhd in 1982 year. When 1992 year, it had changed to a public company with Pakson name and had listed to Bursa Malaysia in 1993 year. It had joint venture in Parkson Retail Group Limited and Parkson Retail Asia. It has 89 department stores in China, Indonesia, Vietnam, and Malaysia, which 7 stores in Indonesia are under the brand name of a Kem Chicks Supermarket and Centro Lifestyle Department Store, and 8 stores in Vietnam, 37 stores in Malaysia are under brand name of Parkson. Corporate Goal Parkson Group has the corporate goal which offers more international brands to join venture in consignment of department stores. Parkson Group is using the strategy of consistent market positioning, localization and focusing Fashion, Cosmetics, Household and Electrical to achieve objectives with target of young and contemporary market segments. Financial Reporting and Performance In 2011, Parkson Group has earned gross sales of RM9.49 billion, which had increased 10% and earned operating profit of RM971 million which had increased 11%. Besides, Parkson Group also had earned the net profit RM348 million, which had increased 22%. Moreover, Balance sheet of Parkson Group maintains healthy in 2011 with funds of more than RM2 billion to shareholders. Future Forecast Parkson Group has planning to focus in expanded new retail markets to more countries. Then it has to maintain partnership with the Indonesia which has following the listing of shares of SGX-ST for future forecast. Parkson Loyalty Card programme, which is emphasized, also is the future forecast of the company to gain more consumers. Market Share Price Movement of PARKSON and BONIA Share price movement is determined to estimate the future cash flows and share price in the company. This report has done to determine the share prices movement of Parkson and Bonia. Market Share Price Month PARKSON HOLDINGS BHD Market Share Price Bonia Corporation Berhad Market Share Price Jan 5.95 1.81 Feb 5.66 1.8 Mar 5.73 1.8 Apr 5.87 1.85 May 5.92 1.85 June 7.73 1.81 July 6.12 1.81 Aug 5.89 1.73 Sep 5.82 1.65 Oct 5.69 1.72 Nov 5.81 1.96 Dec 5.84 2.07 Scatter Diagram Graph Scatter Diagram is a technique that uses to determine relationship between two months and to determine how the financial market works and the risk of company. Below is the table of monthly share price Parkson, which uses to plot scatter diagram graph market share prices. PARKSON HOLDINGS BHD Month x y Month JAN 5.95 5.66 FEB FEB 5.66 5.73 MAR MAR 5.73 5.87 APR APR 5.87 5.93 MAY MAY 5.92 7.73 JUN JUN 7.73 6.12 JUL JUL 6.12 5.89 AUG AUG 5.89 5.82 SEP SEP 5.82 5.69 OCT OCT 5.69 5.81 NOV NOV 5.81 5.84 DEC DEC 5.84 2.2.1 Scatter Diagram Graph of PARKSON HOLDINGS BHD The graph above has showed that the correlation between 2 months of the share price of Parkson, which the highest is on June RM7.73 and the lowest, is on February RM5.66. BONIA CORPORATION BHD MONTH x y MONTH JAN 1.81 1.8 FEB FEB 1.8 1.8 MAR MAR 1.8 1.85 APR APR 1.85 1.85 MAY MAY 1.85 1.81 JUN JUN 1.81 1.81 JUL JUL 1.81 1.73 AUG AUG 1.73 1.65 SEP SEP 1.65 1.72 OCT OCT 1.72 1.96 NOV NOV 1.96 2.07 DEC DEC 2.07 2.2.2 Scatter Diagram Graph of BONIA CORPORATION BHD The graph above is scatter diagram of Bonia, which the highest is on December RM2.07, and the lowest, is on October RM5.66. Based on the scatter diagram graph, it also has showed Parksons correlation between 2 months is strong than Bonia. Calculation of Correlation Coefficient However, it needs to use calculation of correlation coefficient to measure more accurately that weak and strong of correlation between 2 months are interpreting. It takes on values ranging between +1 and -1. PARKSON x y xy x ² y ² 5.95 5.66 33.68 35.40 32.04 5.66 5.73 32.43 32.04 32.83 5.73 5.87 33.64 32.83 34.46 5.87 5.92 34.75 34.46 35.05 5.92 7.73 45.76 35.05 59.75 7.73 6.12 47.31 59.75 37.45 6.12 5.89 36.05 37.45 34.69 5.89 5.82 34.28 34.69 33.87 5.82 5.69 33.12 33.87 32.38 5.69 5.81 33.06 32.38 33.76 5.81 5.84 33.93 33.76 34.11 5.84 5.95 34.75 34.11 35.40 72.03 72.03 432.74 435.78 435.78 The formula of Correlation Coefficient The answer shows that the correlation coefficient of Parkson following by the 2 months is 0.11. It means that the correlation efficient of between 2 months of the share price are weak. BONIA x y xy x ² y ² 1.81 1.80 3.26 3.28 3.24 1.80 1.80 3.24 3.24 3.24 1.80 1.85 3.33 3.24 3.42 1.85 1.85 3.42 3.42 3.42 1.85 1.81 3.35 3.42 3.28 1.81 1.81 3.28 3.28 3.28 1.81 1.73 3.13 3.28 2.99 1.73 1.65 2.85 2.99 2.72 1.65 1.72 2.84 2.72 2.96 1.72 1.96 3.37 2.96 3.84 1.96 2.07 4.06 3.84 4.28 2.07 1.81 3.75 4.28 3.28 21.86 21.86 39.87 39.95 39.95 The answer shows that the correlation coefficient of Bonia following by the 2 months is 0.38. It means that the correlation efficient of between 2 months of the share price are weak. However, it still better if compares with Parkson. Calculation Regression line of Best Fit According to Sir Francis Galton (1822-1911), which had developed scatter diagram and correlation coefficient, also had identified regression line that used to do prediction. Equation of x (current share price) and y (predicted share prices) Formula Regression Line of Best Fit PARKSON Therefore, 2.2.2.1 Regression Line Best Fit of PARKSON HOLDINGS BHD is the equation line of Parkson. Therefore, it can use to predict the share prices for future. For example, if this month the share price (x) is RM6.0, And the next months share price also will be RM6. Based on the graph, it also has showed Parksons share prices are more stable. BONIA 0.38 1.8217-0.692 Therefore, 2.2.2.2 Regression Line Best Fit of BONIA CORPORATION BHD is the equation line of Bonia. There also can use to predict the share prices for future. For example, if this month the share price (x) is RM2.0, And the next months share price also will be RM2.64. Based on the graph, it also has showed Parksons share prices are more risky, if compares with Parksons regression line of best fit. Time Series Graph Time series is a collection of market share prices then shows that which month is the highest and lowest, and the upward or down turn in the market. PARKSON HOLDINGS BHD 2.3.1 Time Series Graph of PARKSON HOLDINGS BHD Based on the graph above, the share prices of Parkson has moved down on January to February and moved up again on March. The most transmutation in Parkson is on May which moved up to June then moved down again to July. BONIA CORPORATION BHD 2.3.2 Time Series Graph of BONIA CORPORATION BHD Based on the graph above, the share prices of Bonia has moved moderate in early of the year 2011. Then the share prices start move down on August to September and move up again on October. Calculation of Correlation Coefficient Same with 2.2.1 calculation for scatter diagram, now is calculate correlation coefficient of time series of Parkson and Bonia to determine the relation between month and share prices. PARKSON x y xy X ² Y ² 1.00 5.95 5.95 1.00 35.40 2.00 5.66 11.32 4.00 32.04 3.00 5.73 17.19 9.00 32.83 4.00 5.87 23.48 16.00 34.46 5.00 5.92 29.60 25.00 35.05 6.00 7.73 46.38 36.00 59.75 7.00 6.12 42.84 49.00 37.45 8.00 5.89 47.12 64.00 34.69 9.00 5.82 52.38 81.00 33.87 10.00 5.69 56.90 100.00 32.38 11.00 5.81 63.91 121.00 33.76 12.00 5.84 70.08 144.00 34.11 78.00 72.03 467.15 650.00 400.38 0.0154 0.00024 The answer shows that the correlation coefficient of Parkson following by the months and share price is 0.0154. It means that the correlation efficient of between months and share price are very weak. BONIA x y xy X ² Y ² 1.00 1.81 1.81 1.00 3.28 2.00 1.80 3.60 4.00 3.24 3.00 1.80 5.40 9.00 3.24 4.00 1.85 7.40 16.00 3.42 5.00 1.85 9.25 25.00 3.42 6.00 1.81 10.86 36.00 3.28 7.00 1.81 12.67 49.00 3.28 8.00 1.73 13.84 64.00 2.99 9.00 1.65 14.85 81.00 2.72 10.00 1.72 17.20 100.00 2.96 11.00 1.96 21.56 121.00 3.84 12.00 2.07 24.84 144.00 4.28 78.00 21.86 143.28 650.00 39.95 On the other hand, coefficient of Bonia between months and share price is. Although the correlations efficient are very weak, but it still better if compares with Parkson. Calculation Regression line of Best Fit Same with 2.2, regression line of best fit also has used to determine in time series. PARKSON Therefore, is the equation line of Parkson. BONIA 0.002 1.8217-0.013 Therefore, is the equation line of Bonia. Market efficiency hypothesis Efficient capital market, which security prices change rapidly following by new information and, therefore, the current prices of securities reflect all information about the security. It is important to analyze capital markets efficiency and understand the efficient market hypothesis because its results of researches have significant real-world implications for investors and portfolio managers. An efficient market is requires a large number of profit maximizing participants analyze and value securities. Random Walk Theory Random walk theory is defines by the fact that price changes are independent of each other (Brealey et al, 2005). Actually random walks is connected to efficient market hypothesis, which if more efficient the market, the more random of share prices will change. Investors cannot accurately predict the share prices no matter with the correlation coefficient and regression line of best fit. Thus, share prices always fully reflect the information available and no profit can be made from information based trading (Lo and MacKinley, 1999). Different Forms of Market Efficientcy According to FAMA, there have three sub hypotheses in efficient market hypotheses which are weak efficiency, semi-strong efficiency and strong efficiency. 2.4.2.1 Weak Efficiency The weak forms of the efficient market hypothesis states that share price fully reflect all historical information. It means that past rates of return and other historical share prices do not have relationship with future rates of return, which is rates of return should be independent. 2.4.2.2 Semi-strong efficiency The semi-strong form of the efficient market hypothesis states that share prices will adjust immediately and in an unbiased manner to reflect new information, which is made publicly available. This does not mean that everybody has to have the same opinions about the significance of the new information. Prices will reflect the view of the market, which will automatically be the best interpretation of the mechanism. The implication of this is that a share can never be over or under prices according to the information, which is publicly available. 2.4.2.3 Strong efficiency The strong form of the efficient market hypothesis states share prices reflect all information. This means that no investors have monopolistic access to information related to the prices. The strong form efficient encompasses both weak form efficient and semi strong form efficient. Further, the strong form efficient will get more assumption of efficient markets, to assume perfect markets, in which prices adjust to the release of new news. Technical and Fundamental Analysis Based on the study of past share prices, many financial analysis seems to be view because of capital market are inefficient. A technical analysis or chartist has occurred to predict future price movements from prices. Besides, fundamental analysis is study publicly available information such as published accounts in order to try to identify the real worth or intrinsic value of shares, which may be more or less than the share price. Anomalies in the behavior of share price Many such anomalies have been reported and investigated in the quest to understand the behavior of share prices (Fama 1998). Calendar effects There has some calendar effects have been examined, which trading at particular times of the day can lead to negative or positive returns. One study found a significant monthly effect wherein all the markets cumulative advance occurred during the first half of trading months. An analysis of the weekend effect found that the mean return for Monday was significantly negative during 5 year sub periods and a total period. In contrast, the average return for the other 4 days was positive. The size anomalies The returns from investing in smaller companies have been shown, in the long run, to be greater than the average return from all companies. One study, for example, found that small firms outperformed large firms by 6% per year (Dimson and Marsh 1986). It has been suggested that above-average returns from small companies may compensate for the greater risk associated with them, such as the risk of financial distress. Concepts Security Valuation and Capital Budgeting Security Valuation Security Valuation is the valuation on the net assets of company which willing or able to let investors invest to the company. With the analysis of valuation, investors can determine which companys share prices are under or over valued, and make the decisions in investment. 3.1.1 Asset Valuation Net asset Backing is more appropriately referred to as net tangible assent backing because it excludes intangible assents such as goodwill. And it is sometimes used as a measure of the underlying value of a companys shares in the grounds that it represents what shareholders are entitled to in the event that a company is wound up, it can then be compared with the current price of a companys shares. Parkson 1. Net Assets Method Of Share Valuation Total Assets 7,270,943,000 Intangible Assets 1,235,534,000 Total Liabilities 3,887,578,000 Net Assets Value of Equity 2,147,831,000 No. of Ordinary Shares = 1,093,673,000 Value Per Share = Net Assets Value of Equity divide; No. of Ordinary Shares = 1.964 Income Based Price Earnings Ratio (P/E) Earning Yield (EY) Bonia Asset Valuation Net Assets Method Of Share Valuation Total Assets 373,250,000 Intanglible Assets ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ 68,848,000 Total Liabilities ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ 126,263,000 Net Assets Value of Equity 178,139,000 No. of Ordinary Shares = 201,572,000 Value Per Share = Net Assets Value of Equity divide; No. of Ordinary Shares = 0.88 Income Based Price Earnings Ratio (P/E) Earning Yield (EY) Asset Valuation PARKSON BONIA Net Assets 1.96 0.88 P/E 4.46 2.30 EY 8.77 2.38 Market Value 5.84 2.07 Market Value Capitalization EY Capitalization As a result, Parksons market value has over valued, which market capitalization is RM, but had growth in. It means that Parkson has gained more profit. On the other hand, market capitalization of Bonia also has over valued which RM417, 254,040 but has growth the profit to 478,965,884. It means that the Bonia also has earned more profit. If compared with Parkson, investors are able to invest in Parkson because of Parkson has earned more profit than Bonia according to the valuation above. Capital Budgeting A capital budgeting decision is one that involves the allocation of funds to projects that will have a life of at least one year and usually much longer. Basic capital budgeting decisions determine whether there is under or over capacity in a given firm or within an industry. Whether the marketing manager gets a new product approved for production and distribution may be a function of how well he or she provides data into the capital budgeting process and understand the analysis. 3.2 Importance of Capital Budgeting A proper making decision on capital budgeting is important in increasing a companys value as well as maximize shareholders wealth. It also has involved in long-term implication for the company and might get risk in complexion. If investment projects have failed in the future, the company will have to bear the burden of fixed cost. Besides, capital budgeting is not easy to reversible because it is difficult to search market assets.