Answer:
d. It is best measured using the statistic variance inflation factor (VIF).
Explanation:
Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance
Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.
- VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
- VIF as a multicollinearity correction : Calculating
= σ^2 / ![[TSS j (1 - R^2j)]](https://tex.z-dn.net/?f=%5BTSS%20j%20%281%20-%20R%5E2j%29%5D)
; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j
Answer:
True
Explanation:
A channel of distribution is a series of firms or individuals that facilitate the movement of the product from the producer to the final consumer is a true statement.
A distribution channel consists of vendors, producers, out sourcing firms, logistic providers, sales persons, retailers, and finally consumers. Different companies have different channels of distributions based on their product needs and their market demand and expansion.
A product has to go through several processes in order to reach the consumer.
Answer:
$480,000
Explanation:
The computation of the depreciable cost of the new asset is shown below:
Given that
Depreciation tax shield = $19,200
Tax rate= 40%
Now
Actual Depreciation for the year is
= $19,200 ÷ 40%
= $48,000
Now
Total Depreciation cost for 10 years is
= $48,000 × 10
= $480,000
Answer: Option A
Explanation:
In Europe during the recession the policy rate of the banks like LIBOR and EURIBOR etc were already very close to zero so unlike United states of america they were not able to decrease the rate further. The monetary policy of Europian banks and authorities saw a major failure in that period.
