Answer:
C. can cause hypothesis tests to be unreliable
Explanation:
Omitted variables are those variables that, when left out of a statistical model, for example linear regression, affects the outcome of the model. It either ignores the impact of the omitted variable to the results or it may assign the effect of the omitted variable incorrectly to the effect of the included variable on the statisical model. This of courses results in the model depicting an upward bias or a downward bias. This is referred to as the Omitted Variable Bias (OVB).
Lets take an example. If you were to run multiple regressions to figure out the factors that affect the prices of houses in an area, you would include multiple variables that you deem significant. The variables you would include in the regression model would include the age of the house, the size of the house, the number of rooms and so on and so forth. However, lets assume that some of the houses are located near an industrial waste plant which negatively impact the price of the house. You forget to include thos proximity variable in your model which would likely make your model biased since the proximity to a waste plant would drastically impact the price of a house that is similar in all aspects with a house that is located further away.
Furthermore, the aren't any statistical models that would located omitted variables therefore, in the context of the question, omitted variables can cause hypothesis tests to be unreliable
Answer:
Adding up basic monthly expenses and subtracting this total from take-home pay, plus trying to find out ways or figuring out what to give up to make the monthly loan payment.
Explanation:
A loan is simply a borrowed money that must be repaid at a certain point in time.
Before taking out a loan, it is better you ask yourself some questions like the reason for the loan collection, how much am i earning and willing to set aside for the loan repayment and will it be monthly and other questions.
A C. variable cost <span>cost is a cost whose total amount changes in direct proportion to a change in volume.
If something varies, it means that it changes - and in this case, the cost changes with regards to a change in volume. This means that the cost isn't constant, but rather fluctuates based on other changes too.</span>
Answer:
c.$20,140
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Initial investment in the machine is the cash outflow and the net cash flows are the values that are used for Net present value.
Net Present Value = Present value of net cash flows - Initial Investment
Net Present Value = ( 95,000 x 4.212 ) - $380,000
Net Present Value = $400,140 - $380,000
Net Present Value = $20,140
Answer:
False
Explanation:
Apart from simple interest, compound interest can be used for single payments
the formula for compound interest is : future value - present value
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
The formula for simple interest : amount x time x interest rate
Assume that 1000 is to be received in 2 years at the interest rate of 10%
Simple interest = 1000 x 2 x 0.1 = 200
Compound interest
1000 x (1.1)^2 = 1210
1210 = 1000 = 210