All categories

2 years ago

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

1 answer:

6 0

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

You might be interested in

Selecting a job based on your skills and interests is important, because on average, a person with a full time job works approxi

WINSTONCH [101]

C. 2000 hours a year.

Hope it helps!

6 0

2 years ago

A commercial bank will loan you $20,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The a

Lisa [10]

Answer:

Monthly payment = $469.701

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.

The monthly equal installment is calculated as follows:

Monthly equal installment= Loan amount/Monthly annuity factor

Loan amount = 20,000

Monthly annuity factor =

=( 1-(1+r)^(-n))/r

r- Monthly interest rate (r)

= 6/12= 0.5%

n- Number of months ( n) = 20 × 4 = 48

Annuity factor

= ( 1- (1.005)^(-48)/0.005= 42.5803

Monthly installment= 20,000 /42.5803 = $469.701

Monthly installment = $469.701

Monthly payment = $469.701

8 0

3 years ago

Neuman Corporation Convertible Bonds The following data apply to Neuman Corporation's convertible bonds: Maturity: 10 Stock pric

Natalija [7]

Answer:

A. The bond’s conversion ratio is 28.57

B. The bond’s conversion value is $857.14

C. The bond’s straight debt value is $798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

Explanation:

A. In order to calculate the bond’s conversion ratio we would have to calculate the following formula:

bond’s conversion ratio=par value/conversion price

According to the given data:

par value=$1,000

Conversion price=$35

Therefore, bond’s conversion ratio=$1,000/$35

bond’s conversion ratio=28.57

B. To calculate the bond’s conversion value we would have to make the following calculation:

bond’s conversion value=bond’s conversion ratio*Stock price

bond’s conversion value=28.57*$30.00

bond’s conversion value=$857.14

C. To calculate the bond’s straight debt value we would have to calculate the following formula:

bond’s straight debt value=PV(0.08,10,50,1,000)

bond’s straight debt value=$798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

7 0

2 years ago

According to anthropological ethics, the first responsibility of the anthropologist is to the people studied.

Len [333]

The answer is true. The anthropologists have main ethical obligations to the people, species, and materials they research and to the people with whom they work. These duties can exchange the goal of seeking new knowledge, and can lead to decisions not to start or to stop a research project when the primary obligation conflicts with other responsibilities, such as those unsettled to sponsors or clients.

8 0

2 years ago

Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,338. FICA tax for S

deff fn [24]

Answer:

$1,057.86

Explanation:

Payroll taxes include:

Social security tax withholdings 6.2% (on the first $132,900 of wages paid) = 6.2% x $8,338 = $516.96
Medicare tax withholding 1.45% = 1.45% x $8,338 = $120.90
Federal unemployment taxes (FUTA) 0.6% = $7,000 x 0.6% = $42
State unemployment taxes (SUTA) 5.4% = $7,000 x 5.4% = $378

total payroll taxes = $1,057.86

4 0

2 years ago