<span>"Price and quantity" are the two variables that are needed to calculate demand.
Demand refers to the amount or quantity that a man is both willing and ready to consume at each cost in a given time period, by keeping every single other thing consistent. When Price and quantity shift conversely by keeping all different things constant, it refers to the law of demand. </span>
Answer:
$1,245,000
Explanation:
The computation of the amount reported as the pension liability is shown below:
= Ending balance of Projected benefit obligation - Fair value of pension plan assets
= $3,760,000 - $2,515,000
= $1,245,000
We simply deduct the fair value from the ending balance of projected benefit obligation that the amount reported could be come
Answer:
9.5%
Explanation:
The computation of the after tax rate of return is shown below:
But before that first determine the following calculations
The interest income earned
= $800,000 × 12.50%
= $100,000
Now After tax interest income is
= $100,000 × (1 - 0.24)
= $76,000
Now
After tax rate of return on investment is
= ($76,000 ÷ $800,000) × 100
= 9.5%
Answer:
a. The director is wrong: the lurking variable here is the severity of the blizzard. A more severe blizzard calls for more plows and keeps people at home, where they are more likely to make online purchases.
Explanation:
The director is correlating the number of snow plows on the road with the amount of online purchases - the <em>correlation </em>is high, but it doesn't mean that the increase on online purchases is <em>caused </em>by the number of snow plows on the road.
The question is: why would the number of snow plows on the road increase in the first place? Snow plows are sent out according to the amount of snow that has fallen, which means that the <em>lurking variable </em>that explains the increase in the number of snow plows and the amount of online purchases, is the severity of the blizzard in terms of how much snow has fallen. When the weather outside is too harsh or dangerous for people to go out, then it is most likely that they prefer online purchases. If the director were to analyze the correlation between the severity of the blizzard and the amount of online purchases, he would find a high correlation as well and in this case it would be the variable that actually explains the behavior of the consumers.
Remember that a lurking variable is the non-controlled variable that affects both the dependent and independent variables. In this case, there is nothing that the director can do about the severity of the blizzard besides perhaps increasing the stock whenever the severe blizzard season rolls around.
