Answer:
$1,050,000
Explanation:
The computation of the net income is shown below:
Net income = Sales revenue × profit margin percentage
= $17,500,000 × 6%
= $1,050,000
To determine the net income we multiplied the sales revenues by its profit margin percentage so that the correct value could be arrived.
Answer:
(B) multicollinearity is present.
Explanation:
Multicollinearity -
It is the process where , one of the predictor variable in the multiple regression model can be linearly predicted from the others with the substantial degree of accuracy , is known as multicollinearity or collinearity .
<u>In this case , the coefficient estimated of the multiple regression can change erratically for even a small change in the model .</u>
hence , from the question , the indication is of (B) multicollinearity is present .
Answer:
9.2%
Explanation:
expected return of the investment = potential return x chance of each return happening
Expected return of the investment:
- 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
- 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
- 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
- total expected return = 9.2%