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Paha777 [63]
3 years ago
15

The residential division of Prism's high-speed Internet service uses one advertising agency, while its commercial division uses

another. Two analysts, Andy and Brad, are asked to test the effectiveness of the two agencies. Andy proposes an A/B test that compares the click-through rates per ad of the two agencies. Brad proposes a difference-in-difference test in which the budgets for both agencies are increased by 50%, and the percentage changes in the click-through rates are compared.True or False: Andy's proposal is more likely than Brad's to suffer from bias due to issues with "representativeness."
Business
1 answer:
pashok25 [27]3 years ago
4 0

Answer:

Andy's proposal is more likely than Brad's to suffer from bias due to issues with "representativeness."

The above statement is True.

Explanation:

AB testing compares the click-through rate of the two agencies only. This test runs on random basis. It is a straightforward exercise that affects the business in the short-run and its effect are temporary. While difference-in-difference testing studies the non-randomized data. The rates are higher but it covers the whole data.  

Andy's proposal is more likely than Brad's to suffer from bias to issues with 'representatives'. Andy opts for A/B testing while Brad opts for difference-in-difference testing. Therefore, Andy's proposal is more likely to bias due to limited verification.  

Hence, the given statement is  

'True'

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Answer:

can be reduced by placing a large number of small bets rather than a small number of large bets.

AND

can be reduced by increasing the number of stocks in a portfolio.

Explanation:

Hope this helps :)

5 0
4 years ago
Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:
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<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.


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7 0
3 years ago
Kristi sells purses. Her cost is $35 per purse. On a certain day, she sells 12 purses, and her producer surplus for that day amo
aleksandrvk [35]

Answer:

$50

Explanation:

The computation of the selling  price of each purse is shown below:

As we know that

Selling price = Total value ÷ number of purses sold

where,

Total value is

= Cost of the purse × number of purses sold + producer surplus

= $35 × 12 purses + $180

= $600

And, the number of purses sold is 12

So, the selling price of each purse is

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4 0
3 years ago
The following information is available for Discounted Supplies Inc. and its two divisions, Durable Goods and Nondurable Goods. W
Yuri [45]

Answer:

The income before taxes for Discounted Supplies Inc is calculated as follows:

Sales - $100,000

less Variable cost - $24,500

less Fixed cost: Controllable & Uncontrollable & Unallocated - $25,500

less Operating cost - $16,400

Net Income = $33,600

Explanation:

The net income is the income before taxes.  It is arrived at after deducting variable and fixed costs of sales, including operating cost.

It is based on this figure that income taxes will be levied.

The net income or income before taxes is regarded as the bottomline profit or returns or earnings that is distributable to stakeholders, including the government for taxation and the shareholders in form of dividends.

It shows the result of the efforts in running a business.  A positive income before taxes shows that costs are being efficiently managed.  It leaves a compensation for investors and the economy as a whole.

4 0
3 years ago
Millennial employees are of great interest to organizations today. Millennials are the most educated generation in the history o
Wittaler [7]

Answer:

The answers are independent task environment, access to cutting-edge technology, and opportunities to learn.  

Explanation:

Millennials are a group of individuals of a generation commonly starting from 1980s to early 2000s. These people are also called Generation Y. They are thought to have different working aspirations, preferences, and style compared to the previous generations. Thus, many researchers and consultants alike advocate for a different way in managing them as well.  

4 0
3 years ago
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