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2 years ago

With respect to the consumer price index, the substitution bias arises because:

Business

1 answer:

natita [175]2 years ago

5 0

Answer:

a. prices of goods and services do not change in the same proportion from year to year.

Explanation:

Substitution bias describes a possible bias in economic index numbers if they do not incorporate data on consumer expenditures switching from relatively more expensive products to cheaper ones as prices changed.

Substitution bias occurs when prices of items change relatively to one another. It considers how consumer expenditures are reflected in a consumer price index. Consumers will tend to buy more of the good whose price declined, and less of the now relatively more expensive good.

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Show how Cablevision can conduct an ROI analysis. Describe the information that the company should collect and how it should b c

Flauer [41]

Answer:

Explanation:

Cablevision can easily accomplish this by doing the following. First gather the number of sales of premium services and other products that non-trained individuals are accomplishing in a given time period (example, one month). Next, under the same conditions place the newly trained individuals and gather the same data from them (number of sales/subscribers gained, premium products, and other products). Finally, they would simply need to compare the difference in the number of sales to see if the training paid off. They would also need to calculate if the difference in sales surpasses the costs of training.

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3 years ago

Xyz company is a low-cost provider. xyz is most susceptible to

Alex777 [14]

Xyz company is a low-cost provider. Xyz is most susceptible to ANY NEW INNOVATIONS OR INVENTIONS FROM A COMPETITOR COMPANIES.
Low cost strategy is one of the three generic marketing strategies. It is a pricing strategy in which a service provider or a company reduces the cost to increase profit and demand.

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3 years ago

Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market

Soloha48 [4]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Bond carrying value = $1,470,226

Rate of interest = 8%

Rate of interest (Semiannual ) = 4%

So, we can calculate the the bond interest expense on the first interest payment by using following formula:

The bond interest expense = Bond carrying value × rate of interest (semiannual)

By putting the value we get

= $1,470,226 × 4%

= $58,809

6 0

3 years ago

What do you understand by the term problem? Discuss<br>plz answer it fast!

Dafna11 [192]

An issue disturbing the continuation of an activity

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3 years ago

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods ag

Alina [70]

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. The document which is applicable here is an A. <u>insurance certificate.</u>

<u />

Explanation:

A certificate of insurance is a document used to provide information on specific insurance coverage.
The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, named insured, and the policies' effective periods
Certificate of Insurance is a summary document usually issued by an agent on behalf of an insurer that says a policy has been issued to an insured for a general type of risk.
The Certificate is usually issued to a third party who wants some evidence or assurance that a policy has been issued.
A certificate of insurance is requested when liability and large losses are a concern.
Most commercial leases require the tenant to provide certificates of insurance or other evidence of insurance. Certificates of insurance are typically issued by an agent or broker for the named insured and set forth the coverages written for the insured

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3 years ago