All categories

3 years ago

The error terms are ______________ in the probabilistic sense.

1 answer:

4 0

In probabilistic sense random error are independent. Also, assumptions for random error, epsilon are mean equal to 0, variance equal to sigma squared and normal distribution. General form of probabilistic is y=deterministic+random error where y is the variable of interest. We always assume that the mean value of the random error equals 0. E(y) =mean of y, E(y) =deterministic component.

You might be interested in

Which of the following is the most profitable investment for a candy shop that earns $1 profit per pound of candy? (5 points) Gr

Novay_Z [31]

Worker at $12 per hour, producing 16 pounds of candy per hour

8 0

3 years ago

Haag Corp.'s 2021 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, t

krek1111 [17]

Answer:

$440,000

Explanation:

The first is to calculate the taxable profits and taxable profit can be calculated as under:

Taxable Profit = Pre-Tax Accounting Profit - Tax allowable expenses not deducted + Tax disallowed expenses deducted previously - Tax disallowed Income added previously - Tax allowed income not added in accounting profits

Here

Pre-Tax Accounting Income is $2,500,000

Municipal Bond Income is the Tax Disallowed Income added previously to accounting profits and must be eliminated from it at $100,000

Depreciation for tax purposes which is in excess of the book depreciation allowed is $200,000 and is Tax allowed Expenses not deducted.

By putting the values, we have:

Taxable Profit = $2,500,000 - $200,000 - $100,000

Taxable Profit = $2,200,000

Now we will compute the income tax payable at 20%

Tax Payable = 20% * $2,200,000 = $440,000

7 0

3 years ago

You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of: a. An over-the-

OleMash [197]

Answer:

C. A secondary market transaction.

Explanation:

In a secondary market, the investors buy and sell securities they own. It is typically known as the stock market although in the primary market stocks are sold too. But the difference is that the primary market is for companies and governments.

I hope this answer helps you.

4 0

3 years ago

Read 2 more answers

Gibson Baking Company sells its brownie mixes all over the world. The company includes directions on the package for baking the

tekilochka [14]

Answer:

physical.

Explanation:

In Business management, a force field analysis can be defined as a multipurpose diagnostic model that is mainly focused on the consideration of various factors that include both the degrees of cooperation and collaboration in an organization.

This ultimately implies that, a force field analysis is a change model, technique or framework that views and analyzes a problem as a product of many forces working in different but often opposite directions i.e action-reaction force pairs.

In this scenario, Gibson Baking Company includes directions on the package (brownie mixes) for baking a product at high altitude levels because they know this can affect baking times.

Thus, the type of environmental force which caused this decision is physical since it is related to artificial (man-made) and natural components i.e altitude. Some examples of the natural components are altitude, weather, water, atmosphere, land, vegetation, etc.

8 0

3 years ago

How much will $2500 left in an an account earning 7.3% interest compounded quarterly be worth in 5 years?

MArishka [77]

The compound interest has the capacity to capitalize on the interest of the previous period, that is to say that it converts the interest earned in a period into capital for the following one, in this way the formula of the compound interest is:

$V_{f} = V_{p} (1 + i)^n$

Where $V_{f}$ is the future value or capital that will remain, $V_{p}$ the present or initial value, $i$ the interest rate per period and $n$ the number of periods to be capitalized, in this case we have a present value of $2,500, a quarterly rate of 7.3% , that is to say 4 in a year, as they are 5 years, we obtain 4 * 5 = 20 periods, with this we calculate

$2500(1+\frac{7,3}{100} )^{20} =10,231.39$

Answer

$ 10,231.39 will remain in the account

4 0

3 years ago