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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The pharmaceutical example whereby the high-risk, high-return strategy is employed would be characterized by: d. related diversification.
<h3>What is Related Diversification?</h3>
Related diversification can be described as a scenario whereby a firm ventures into a new industry in which there are similarities in the business lines of the new and old industry.
In most cases, related diversification, is a strategy where the existing products and services have much similarity with the new ones that are being developed.
Therefore, the pharmaceutical example whereby the high-risk, high-return strategy is employed would be characterized by: d. related diversification.
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Answer:
c. Risk is higher if a company has more assets.
Explanation:
Financial leverage is the measurement of risk based on the debt of the company. More liabilities involves high risk because company does not have enough to pay for the it's liabilities. If company has more assets then the risk if lower because company is able to pay its liabilities from its assets. The statement " Risk is higher if a company has more assets" is incorrect.
Answer:
Profit : $297,000
Explanation:
Revenue is the earnings generated by a business by selling products and services. Expenses are the cost incurred in the process of generating revenue for the business.
A business will make profits if revenue exceeds expenses.
In this case, the revenue ($895,000) exceeds expenses($598,000). Therefore, the business will make a profit.
The profit will be revenue minus expenses
=$895,000 -$598,000
=$297,000
Answer:
Starfish Enterprises
The reason that is not the cause of the difference in material usage is:
The cost of materials increased from the time of the estimate.
Explanation:
a) Data and Calculations:
Units of materials used for the job = 300 feet
Standard units of materials for similar job = 260 feet
Unit variance = 40 Unfavorable (300 - 260)
b) Material usage variance does not concern with the cost of materials. Since it is stated that the materials price per unit remained the same in both instances, the cost of materials increasing is certainly not a factor for the material usage variance. The variance is caused by the other factors.
