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mojhsa [17]
3 years ago
12

In Problem 11 in Chapter 4, the R-squared from estimating the model log(salary) = β0 + β1 log(sales) + β2 log(mktval) + β3profma

rg+ β4ceoten + β5comten + u, using the data in CEOSAL2.CSV, was R2 = .353 (n = 177). When ceoten2 and comten2 are added, R2 = .375. Is there evidence of functional form misspecification in this model?

Business
1 answer:
Sholpan [36]3 years ago
7 0

Answer:

Please see attachment

Explanation:

Please see attachment

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If the slope for an equation using customer satisfaction to predict profits is 2.4, this means that ________.
Mariulka [41]

Answer: a.Increasing customer satisfaction by one unit will increase profits by 2.4

Explanation:

Slopes measure the change in the dependent variable as a result of a change in the independent variable.

In the above scenario, if customer satisfaction was being used to predict profits that would mean that customer satisfaction is the independent variable and profits are the dependent variable. With a slope of 2.4 therefore, the meaning is that if customer satisfaction increases by 1 then the profits for the company will increase by 2.4.

For instance if customer satisfaction in a hotel was increased by 1 unit for 1,000 customers, the company can expect an increase in profits of $2,400.

7 0
3 years ago
Central Systems desires a weighted average cost of capital of 12.7 percent. The firm has an aftertax cost of debt of 4.8 percent
Anon25 [30]

Answer:

Debt-equity ratio = 0.34 or 34%

Explanation:

Weighted average cost of capital (WACC) = 12.7%

Cost of debt = 4.8%

Cost of equity = 15.4%

Let 'We' and 'Wd' be the fraction of capital corresponding to equities and costs, respectively, and that We + Wd =1.

The weighted average cost of capital is given by

WAAC = 0.154*W_e +0.048W_d\\0.127 = 0.154*W_e +0.048*(1-W_e)\\0.079 = 0.106W_e\\W_e=0.745\\W_d = 1-0.745=0.255

The debt-equity ratio is:

DER = \frac{W_d}{W_e}=\frac{0.255}{0.745}\\DER =0.34

7 0
4 years ago
A newspaper featuring a section on world news( essay) HELP PLZZZZZZZZ
ivolga24 [154]
You can do about the schools having flees and how they are moving to to alot of different schools and busses and how the bugs are getting bigger if it's base on the news
4 0
3 years ago
2. The Lorenz curve measures inequality in person income distribution. What is the difference between personal income distributi
Bogdan [553]

Answer: The answers are given below

Explanation:

Personal income distribution focuses on how income is being shared among the individuals in a nation while the functional income distribution has to do with the amount of income that is relative to the production factors

A progressive tax is a type of tax whereby the high income earners pay a larger percentage of their income than those that are from the low income groups while a proportional tax is a type of tax whereby everyone whether from high or low income group pays the same percentage as tax.

The problem of progressive taxation as a means to achieve greater equality in income distribution is that it encourages inequity. The aim of the progressive tax system is to bring about fairness whereby everyone in the economy will pay a fair share but the reality is that actually leads to many households paying more than the amount they should fairly pay while some pay close to nothing. It can also lead to the disincentive to work hard. When workers realize that a higher percentage of their income will be deducted as tax, they may reduce their commitment to work which lead to reduction in productivity.

3 0
4 years ago
Kyra is a middle manager for her firm and just finished comparing the results of a promotional campaign with the company's outco
Anni [7]

Answer:

C. communicate results and deviations with management and employees involved.

Explanation:

The control process is a process in which the company collects and evaluates the information about a system or process to make decisions. This process involves: establishing performance standards, measuring the actual performance, evaluate the performance against the standards, analyze results and possible deviations and take the necessary actions. As Kyra already compared the results of the promotional campaign with the company's outcome expectations, the next step would be to analyze the results in which she would have to share the information with the employees involved and determine if there are deviations. According to this, the answer is that the next step in the control process is to communicate results and deviations with management and employees involved.

4 0
3 years ago
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