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Alexxandr [17]
3 years ago
13

Suppose that the average growth rate of the economy has been 3​%. Given a forecast of 2​% growth this​ year, if rational expecta

tions​ hold, then the expected forecast error is
Business
1 answer:
Rudik [331]3 years ago
4 0

Answer and Explanation:

Forecast error is a difference between Estimated data and real data, here Estimated data is referred to as forecast data.

According to rational expectations principles, expected forecast error's average always near to be zero.

Expected forecast error may be forecast or predict in future.

So, Expected forecast error will be zero (0%)

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Industries that are viewed as specialty (instead of a commodity) have a high level of rivalry?
nikdorinn [45]

Answer:

Specialty goods are the products which require high efforts in purchasing because their cost is certainly high, consumers cant take a risk of buying them frequently, like sporting cars, high end cameras, luxury high end clothing etc. There are many industries in specialty goods in which you can see intense level of rivalry. For example, in sporting cars, you have multiple brands which have very severe kind of rivalry like Jaguar and BMW - Lexus and Lotus, they not compete in cars but they compete in their advertisements, evenest as well.

Whereas, when you consider, photographic camera industry, you will also find intense kind of rivalry between Canon and Sony, Leica and Olympus. Here they not only face direct competition from other camera brands, but they also have to face competition from the cell phone industry, which also provide high end cameras in their cell phones like iPhone, Samsung and Oppo etc.

4 0
3 years ago
Silver Co. has a $330 petty cash fund. At the end of the first month the accumulated receipts represent $56 for delivery expense
xxTIMURxx [149]

Answer and Explanation:

The journal entry is shown below:

Delivery expenses Dr $56

Merchandise inventory Dr $179

Miscellaneous expenses $25

                 To Cash $260

(Being the reimbursement of the account is recorded)

For recording this we debited all expenses and credited the cash as it increased the expenses and decreased the assets

3 0
3 years ago
Cellular Talk is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 25% a ye
kondaur [170]

Answer:

$12.14

Explanation:

The computation of the current value of one share of the stock is shown below:

D2 = (1 × 1.25) = $1.25

D3 = (1.25 × 1.25) = $1.5625

Now

Value after year 3 is

= (D3 × Growth rate) ÷ (Required return - Growth rate)

= (($1.5625 × 1.06) ÷ [0.17 - 0.06)]

= $15.05681818

Now

Current value is

= Future dividends × Present value of discounting factor(17%,time period)

= $1 ÷ 1.17 + $1.25 ÷ 1.17^2 + $1.5625 ÷ 1.17^3 + $15.05681818/1.17^3

= $12.14

7 0
2 years ago
Jim agrees orally with West Bank to guarantee a loan that West Bank will make to Susan to purchase an existing restaurant upon S
andrew-mc [135]

Answer: false

Explanation:

The statute of frauds requires some specific contracts types to be executed in writing. According to the statute, the contracts covered include agreements that involve goods worth over $500,

contracts for land sale, and also contracts that last for either one year or more.

Based on the scenario above, it is false as Jim's guaranty agreement with West Bank is enforceable under the Statute of Frauds

5 0
3 years ago
Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-ru
vodka [1.7K]

Answer:

$80,000

Explanation:

Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be

Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000

Variable administrative cost to allocate to Department 1=0.4×$200,000

Variable administrative cost to allocate to Department 1= $80,000

Therefore The Variable administrative cost to allocate to Department 1 would be $80,000

4 0
2 years ago
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