Answer:
once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so that the results reported from period to period are comparable.
Explanation:
Answer:
23.08%
Explanation:
Future value =Present value*(1+r)^n
$4,000 = $3,250*(1+R)^1
$4,000 = $3,250*(1+R)
1+R = $4,000/$3,250
1+R = 1.230769
R = 1.230769 - 1
R = 0.230769
R = 23.08%
Answer: b. The instrument is correlated with x1.
d. The instrument does not directly influence y, except through x1.
Explanation:
Based on the information given in the question, the necessary characteristics of a suitable instrument include:
• The instrument is correlated with x1.
• The instrument does not directly influence y, except through x1.
Some of the criteria for an instrument variable are the fact that it should have a causal effect on independent variable and also the dependent variable isn't directly affected except through the independent variable which is x1 in this scenario.
Therefore, the correct option are B and D.
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