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3 years ago

If you had a two-regressor regression model, then omitting one variable that is relevant:

Business

1 answer:

makvit [3.9K]3 years ago

8 0

Answer:

D. can result in a negative value for the coefficient of the included variable, even though the coefficient will have a significant positive effect on Y if the omitted variable were included

Explanation:

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Qualcomm has developed a groundbreaking new CPU chip. The patent on the chip will last 17 years. You expect that the chip’s prof

umka21 [38]

Answer:

$50.74 million

Explanation:

Interest rate per annum = 8%

Number of years = 17

Number of compounding per annum = 1

Interest rate per period (r) = 8%/1 = 8%

Number of period (n) =17 * 1 = 17

Growth rate (g) = 5%

First payment (P) = 4 ($'million)

PV of the new Chip = p/(r-g) * [1 - [(1+g)/(1+r)]^n]

PV of the new Chip = 4/(8%-5%) * [1 - [(1+5%)/(1+8%)]^17]

PV of the new Chip = 4/0.03 * [1 - [1.05/1.08]^17]

PV of the new Chip = 4/0.03 * [1 - 0.972222^17]

PV of the new Chip = 133.333 * (1 - 0.6194589804)

PV of the new Chip = 133.333 * 0.3805410196

PV of the new Chip = 50.7386757663268

PV of the new Chip = $50.74 million

4 0

3 years ago

A bond has a $1,000 face value, a market price of $989, and pays interest payments of $69.50 every year. What is the coupon rate

____ [38]

Answer:

6.95

Explanation:

Coupon rate = $69.50/$1,000 = .0695, or 6.95 percent

4 0

2 years ago

Assume there are currently five firms producing and selling fertilizer in the South American market. Also assume that the produc

Jobisdone [24]

Answer:

It is given that in an oligopolistic market, there are at first five firms. At the point when the quantity of fums diminishes to three, it implies that the all out yield will likewise decrease. It is on the grounds that, all the makers are delivering separated items. The inventory of merchandise won't increment in light of the fact that the makers would have expanded the creation before, if that was conceivable. Hence, the balance amount will fall and in view of decrease in amount, cost will increase.

Thus, equilibrium price will likely increase and the equilibrium quantity will likely decrease.

3 0

3 years ago

Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $

exis [7]

Answer:

According to Section 1031 of Internal Revenue Code, an exchange of like-kind property is referred to as like-kind exchange, if the exchange meets the following criteria:

The property should be exchanged only for the 'like-kind' (same class) property.
The 'like-kind' property that is in exchange should be either used in operations of business or held for investment purposes.
The exchange should be done under specific timing restrictions or requirements (for indirect exchanges through third parties).

Explanation:

A) Explanation: Since both the properties in exchange are real properties which are used in business, this is a like-kind exchange

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Mortgage value L is relieved off 40,000

Amount reali7ed 160,000

Less: Adjusted basis (175:000)

Realized loss by L (15,000) 

C) Explanation: Since the loss realized is due to exchange, the loss is not recognized.

D) Explanation: Since the loss is not recognized, the character of gain or loss could not be

E) Explanation: The total of realized loss, $15,000 (From Requirement (b)) is deferred.

F) Determine the basis of property acquired in exchange, bowling alley.

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Deferred loss 15,000

Basis of bowling alley 135,000

8 0

3 years ago

The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The

givi [52]

Answer:

TRUE

Explanation:

The CEO 's belief that he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share, is true

Basically, the CEO operates in a niche market as is reported in the scenario

Niche marketing refers to competing within a narrowly defined market segment with a specialized offering.

Most small businesses are generally not niche marketers; they simply have a very small share of a large segment whereas niche marketers have a large market share in a small/tight segment.

Having therefore established his Niche business in a small segment where he has a large market share (otherwise it would not be a niche business), the concerns will be about protecting unique competencies rather than market share

3 0

3 years ago