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Dafna1 [17]
3 years ago
12

(Forecast accuracy across horizons) You are a consultant to MedTrax, a large pharmaceutical company, which released a new ulcer

drug .3 months ago and is concerned about recovering research and development costs. Accordingly, MedTrax has approached yon for drug sales projections at 1- through 12-monthahead horizons, which it will use to guide potential sales force realignments. In briefing vou, MedTrax indicated that it expects your long-hori/on forecasts (e.g., 12-month-ahead) to be just as accurate as vour short-horizon forecasts (e.g., 1-month-ahead). Explain to MedTrax why that is not likely to be the case, even if you do the best forecasting job possible.
Business
1 answer:
Ne4ueva [31]3 years ago
4 0

It is impossible for long-term forecasts to be as accurate as short-term forecasts, because long-term forecasts are based on intuitive facts that may not happen.

Short-term forecasts are more accurate because they are based on how the financial market and trade are doing today, so it becomes easier to predict (through real data) the sales and revenues that a product will be able to produce in a few weeks. However, a country's market and economy situation can change in a matter of months, as these changes can be unpredictable, long-term forecasts are impaired and end up being less accurate.

We can see an example of this right now, through the economic crisis that is spreading all over the world, caused by the expansion of the coronavirus. This expansion was something completely premeditated and probably not considered in the companies' long-term forecasts.

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Match the different types of incomes to their sources.
Rzqust [24]
There are three (3) types of income: Earned Income, Portfolio Income and Passive Income. 

Earned Income - a type of income that is generated through work (e.g. salary)

Portfolio Income - These income are somewhat called "capital gains" because it is where the state gets salary taxes. This type of income is generated through selling investments in a higher price that you paid. 

Passive Income - This type of income is generated through your assets that you have created. Like for instance, you bought a house and let it rent to earn an income. 



7 0
3 years ago
Read 2 more answers
According to the Keynesian transmission mechanism, a rise in the money supply will __________ the interest rate, causing a _____
Len [333]

Answer: The correct answer "e. lower; rise; raises".

Explanation: According to the keynesian transmission mechanism, a rise in the money supply will <u>lower</u> the interest rate, causing a <u>rise</u> in investment demand, which then <u>raises</u> Real GDP.

because a decrease in the interest rate, would cause companies to decide to take loans to invest, thus increasing investment and as a result would increase GDP

7 0
3 years ago
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect. 2. Prep
Nat2105 [25]

Answer:

Cost of goods manufactured= $3,120

COGS= $2,750

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Cost of goods manufactured:

beginning WIP= 0

direct materials= 2,200

Direct labor= 1,000

Factory overhead= 520

Ending work in process= 600

Cost of goods manufactured= $3,120

<u>Now, we can determine the cost of goods manufactured:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 0 + 3,120 - 370

COGS= $2,750

4 0
3 years ago
Which compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percen
emmainna [20.7K]

Answer:

Annual

Explanation:

The ANNUAL compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percentage rate of 10 percent

4 0
3 years ago
Prices tend to be sticky because Multiple Choice government controls most prices. foreign competition discourages domestic firms
maria [59]

Answer:

firms are worried that frequent price changes would annoy consumers.

Explanation:

A price is said to be sticky when there are resistance in market price to change immediately even when changes in the economy of a particular country entails differing price of products is optimal.

In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.

Hence, prices tend to be sticky because firms are worried that frequent price changes would annoy consumers. This ultimately implies that, price stickiness arises due to the fact that business firm or entity are very much concerned or worried that a frequent change in the price of goods and services would make the consumer annoyed.

4 0
3 years ago
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