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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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You want your portfolio beta to be 0.90. Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 an
Tatiana [17]

Answer:

31.47%

Explanation:

Total investment = 4000 + 3000 +9000 = $16,000

% of investment in A = 4000/16000 = 25%

% of investment in B = 3000/16000 = 18.75%

% of investment in Asset beta and risk-free asset = 100% - 25% -18.75% = 56.25%

Let the % of investment in asset with beta of 1.74 is A, % of investment in risk free asset is B.

We have the following simultaneous equations:

0.9 = (0.25 x 1.47) + (0.1875 x 0.54) + (A x 1.74) + (B x 0)

A+B = 56.25%

From the first equation, we get A = 24.78%

--> B = 56.25% - 24.78% = 31.47%

*** Note: Portfolio beta is the weighted sum of individual asset betas, according to the proportions of the investments in the portfolio

*** Note: Beta of risk free asset is 0

6 0
3 years ago
You plan to borrow $ 4 comma 000 from a bank. In exchange for $ 4 comma 000 ​today, you promise to pay $ 4 comma 160 in one year
just olya [345]

Answer:

Please check the attached image for the diagram

Explanation:

I would be borrowing $4000 from the bank. I would be $4,000 richer and the bank would have $4000 less.

In one year, I would be paying the bank $4160. So I would have $4160 less and the bank would be $4160 richer.

A negative sign indicates cash outflow and a positive sign indicates a cash inflow.

I hope my answer helps you.

6 0
2 years ago
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Artemon [7]

Answer:

B

Explanation:

8 0
3 years ago
Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the
Papessa [141]

Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, this might be so because low-income individuals are more prone than high-income individuals to purchase alcohol, tobacco, and gasoline.

<h3>What are Excise taxes?</h3>
  • Any duty on produced items that are assessed at the time of manufacture rather than the time of sale is known as an excise or excise tax.
  • Excises and customs duties are frequently used interchangeably, although customs taxes are imposed on already-existing products when they cross a defined border in one direction, whereas excise is imposed on goods that were created inland.
  • State sales taxes and excise taxes on alcohol and cigarettes are frequently criticized for being regressive.
  • Despite the fact that everyone pays the same rate regardless of income, this may be the case because people with low incomes are more likely than those with higher incomes to buy alcohol, cigarettes, and fuel.

To learn more about Excise taxes refer to:

brainly.com/question/22358769

#SPJ4

5 0
1 year ago
Justify the reasons why businesses use team dynamic theories to understand team performance.
DIA [1.3K]
Team Dynamic Theories analyze how each team members could positively affect each other.

By knowing this information, you could know what cause the positive team dynamic within your team members so that you could utilize it or enchance it even more
8 0
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