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7 months ago

Design a study that has a false correlation caused by a lurking variable.

1 answer:

4 0

An example of a study that has a false correlation caused by a lurking variable is " research scientist examines the influence of diet and exercise on a an individual's blood pressure."

<h3>What is a lurking variable in a study?</h3>

Lurking variable is known to be a kind of a variable that is said not be the explanatory variable nor can it be called the response variable but it is one that is seen to have a relationship (e.g. correlation) with the response and that of the explanatory variable.

Note that A lurking variable is one that can be falsely identify as a strong relationship that exist between variables or it is one that often hide the true relationship.

Hence, An example of a study that has a false correlation caused by a lurking variable is " research scientist examines the influence of diet and exercise on a an individual's blood pressure."

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Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for $15,000 in cas

ra1l [238]

Answer:

$35,000

Explanation:

According to accounting standard IFRS 16 Property, Plant and Equipment is initially recorded at its cost. Estimated market value and offer price will not be considered to record this transaction. Cost incurred for this equipment is as follow:

Cash payment = $15,000

Note payable = $20,000

Total Cost = $15,000 + $20,000 = $35,000

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2 years ago

At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 918,000 Credit sales 31

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Answer:

The journal entries are as follows:

(a) 5% of credit sales,

Bad debts expense A/c Dr. $15,900

To Allowance for doubtful accounts $15,900

(To record the bad debt expense)

Workings:

Uncollectibles:

= 5% × Credit sales

= 5% × $318,000

= $15,900

(b) 3% of total sales,

Bad debts expense A/c Dr. $37,080

To Allowance for doubtful accounts $37,080

(To record the bad debt expense)

Workings:

Uncollectibles:

= 3% × Total sales

= 3% × ($318,000 + $918,000)

= $37,080

Bad debts expense A/c Dr. $18,240

To Allowance for doubtful accounts $18,240

(To record the bad debt expense)

Workings:

Uncollectibles:

= (8% × year end accounts receivables) + Allowance for doubtful accounts balance

= (8% × $143,000) + $6,800

= $18,240

4 0

2 years ago

What two measures are used to describe the problems of growth and economic instability

VLD [36.1K]

The two measures of instability in economic growth are high unemployment rates and inflation

6 0

3 years ago

Assume that the risk-free rate is 6% and the market risk premium is 8%.

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Answer:

r or expected rate of return - market = 0.14 or 14%

r or expected rate of return - stock = 0.2120 or 21.20%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate

rpM is the market risk premium

Under CAPM, the assumption follows that the beta of the market is always equal to 1.

So, expected return on the stock market will be,

r or expected rate of return - market = 0.06 + 1 * 0.08

r or expected rate of return - market = 0.14 or 14%

The beta of the stock is given. We calculate the required rate of return on the stock to be,

r or expected rate of return - stock = 0.06 + 1.9 * 0.08

r or expected rate of return - stock = 0.2120 or 21.20%

4 0

2 years ago

Suppose that demand for a product is Q = 1200 − 4P and supply is Q = −240 + 2P. Furthermore, suppose that the marginal external

eimsori [14]

Answer: 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

Explanation:

Q=1200 - 4P and Q=-240 + 2P

In a free market quantity demand =quantity supplied

1200 -4P = -240 +2P

P =240

Sub P

Q* = 240

Socially optimal quantity is

Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC

MPC= marginal private cost =inverse of supply function

MPC = (1/2)*Q + 120

MEC=12

MSC =(MPC +MEC) = (1/2)Q +120 +12

MSC= MPB where MPB is marginal private benefit = inverse of demand functn

MPB = 300 -(1/4)Q

(1/2)Q + 132 =300 - (1/4)Q

Q° = 224

Difference btw Q* & Q° = 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

4 0

3 years ago