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3 years ago

One of the primary advantages of using econometrics over typical results from economic theory is that

1 answer:

6 0

<span>Econometrics is much more mathematical in nature. In economic theory, only the theoretical part of economic aspect is highlighted but in econometrics, the theory is supported with a mathematical explaination. Econometrics provides a much more deep understanding and explaination of a concept than normal economic theory. it potentially provides you with quantitative answers for a policy problem rather than simply suggesting the direction of the response</span>

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1 . Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpe

Dmitrij [34]

Answer:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

the bank offers 1.6%

in the alternative scenario it offers 1.067%

Explanation:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.

Given the annuity formula

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

if times tends to infinity then the expression:

$\lim_{n \to \infty} (1+r)^{-n} = 1$

Nexti n the annuity formula we got:

$C \times \frac{1-1 }{rate}= PV\\$

So we end up with C / rate = PV

which s the perpetuity formula

800/50000 = 0.016 = 1.6%

800/75000 = 0.0106667 = 1.067%

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4 years ago

The current value in today's dollars of a future sum of money is called :______

AleksandrR [38]

Ans: (a) present value

4 0

2 years ago

If you visited a doctor and the total cost of the visit was $50, but you had a $15

Vinvika [58]

Answer: $15

Explanation:

A copayment or copay simply refers to a fixed amount that is paid by a patient for a covered service, before the patient will receive service. It is an insurance policy which someone who's insured will pay whenever he or she access a medical service.

In this case, since the patient has a copay of $15, then the patient will have to pay $15.

7 0

3 years ago

psc 41 Assuming that the claim is correct - that a large vocabulary is associated to a large income - generate an alternate expl

Hitman42 [59]

Answer:

Lower-income people can have a large vocabulary as well, because of a variety of circumstances. To list a few:

The low-income person may have a job that includes a constant contact with highly-educated people.

The low-income person may himself be a well-educated person who holds a job that does not pay a lot, for example: librarian, or social worker.

The low-income person may live in an area with a great degree of demographic diversity, and even by fluent in several languages because of that. This is common in merchants, who may own a small business that only pays enough to survive, but who have a great degree of contact with many sorts of people.

5 0

3 years ago

Zorn Co. budgeted $600,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budget

Amanda [17]

Answer:

False.

Explanation:

Given: Total budgeted factory overhead cost = $600000.

Plantwide allocation base= 100000 hours.

Now, finding plantwide factory overhead rate.

Formula; Plantwide factory overhead rate= $\frac{total\ budgeted\ factory\ overhead\ costs }{plantwide\ allocation\ base.}$

⇒ Plantwide factory overhead rate= $\frac{600000}{100000} = \$ 6 per\ hours$

Hence, Zorn´s plantwide factory overhead rate is $6 per hour not $3 per hour.

8 0

3 years ago