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2 years ago

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Which of the following is true about multicollinearity?

1 answer:

Komok [63]2 years ago

3 0

Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.

VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
VIF as a multicollinearity correction : Calculating $Var (\beta j )$ = σ^2 / $[TSS j (1 - R^2j)]$ ; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j

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Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The

Rudiy27

Answer:

We should discontinue Wimpy and we will be saving $2,000 as addition to the Net Margin.

Fixed Expenses will be incurred whether we produce or not, thus the deciding factor is a segment being able to generate a positive Contribution Margin.

By discontinuing Wimpy the allocated Fixed Expense will go up to $12,500 Per active unit from $10,000. Although Wimpy will yet retain its Fixed Expense.

Explanation:

Toxemia Salsa Corporation

<u>Segment Review</u>

A.

Wimpy

Contribution Margin = -$2,000

Less Fixed Expense = -$14,000

Segment Margin = -$16,000

Less Allocated Fixed Expense = -$10,000

Net Segment Margin = -$26,000

B.

Mild

Contribution Margin = $45,000

Less Fixed Expense = -$50,000

Segment Margin = -$5,000

Less Allocated Fixed Expense = -$10,000

Net Segment Margin = -$15,000

C.

Medium

Contribution Margin = $35,000

Less Fixed Expense = -$28,000

Segment Margin = $7,000

Less Allocated Fixed Expense = -$10,000

Net Segment Margin = -$3,000

D.

Hot

Contribution Margin = $50,000

Less Fixed Expense = -$40,000

Segment Margin = $10,000

Less Allocated Fixed Expense = -$10,000

Net Segment Margin = -$0

E.

Hot

Contribution Margin = $162,000

Less Fixed Expense = -$68,000

Segment Margin = $94,000

Less Allocated Fixed Expense = -$10,000

Net Segment Margin = -$84,000

F.

Total of flavors

Contribution Margin = $290,000

Less Fixed Expense = -$200,000

Segment Margin = $90,000

Less Allocated Fixed Expense = -$50,000

Net Segment Margin = $40,000

<u>Benchmark of Flavors</u>

If we stop to produce Wimpy we would save $2,000 assuming we will yet incur the segment Fixed Expense of $14,000 in any case (decision: Discontinue)

If we stop to produce Mild we would lose $45,000 assuming we will yet incur the segment Fixed Expense of $50,000 in any case (decision: Continue)

If we stop to produce Medium we would lose $35,000 assuming we will yet incur the segment Fixed Expense of $28,000 in any case (decision: Continue)

If we stop to produce Hot we would lose $50,000 assuming we will yet incur the segment Fixed Expense of $40,000 in any case (decision: Continue)

If we stop to produce Atomic we would lose $162,000 assuming we will yet incur the segment Fixed Expense of $68,000 in any case (decision: Continue)

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2 years ago

From a(n) _____ standpoint, the effect on performance motivation may be limited in ownership program because of the less obvious

patriot [66]

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Transferable skills necessary for successful employment include

harkovskaia [24]

Answer:

Answer is option d i.e. all of the above.

Explanation:

Transferable skills are the skills or qualities that an individual has acquired through their learning processes in school, colleges, and life. These skills are those qualities that help an individual to land a successful job. Therefore, all three skills mentioned, which are basic skills, thinking skills, and personal qualities; above are included in transferable skills. Hence, the answer is option d.

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Is 6ixnine getting out of jail this year?

Alborosie

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S_A_V [24]

Answer:

jul-01 Prepaid expenses 13.620

jul-01 Cash 13.620

dec-31 Insurance policy expense 2.270

dec-31 Prepaid expenses 2.270

Explanation:

Paid 1-jul 13620

Three Years 13.620 36 months

Monthly 378 month

Current Year 2.270 6 months

jul-01 Prepaid expenses 13.620

jul-01 Cash 13.620

dec-31 Insurance policy expense 2.270

dec-31 Prepaid expenses 2.270

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