These deviations are likely to be caused by emotions and it is important to have information about the person you are dealing with to favor your interests and make the best decision.
The Rational Choice Theory states:
- A person will always make decisions to favor himself or herself
- Decisions are based on rational calculations
Despite this, individuals might make irrational decisions if:
- Emotions
- External factors
In the case of Mr. Jones, he makes an irrational decision because by suing Mr. Smith he loses more money. This is likely motivated by emotions such as a desire for justice or a desire to revenge.
Moreover, in this situation, it is shown Mr. Jones does not have enough information about the person he is dealing with (Mr. Smith) and this lack of knowledge does not allow him to make the best decision possible.
Learn more in: brainly.com/question/18101591
Answer: $327000
Explanation:
The budgeted selling expenses for the month of July, if Beeman estimates sales revenues to be $540,000 will be:
Sales Commission = $540000 × 4% = $21600
Add: Sales Manager Salary = $285,000
Add: Additional Selling Expense = $540000 × 1% = $5,400
Add: Miscellaneous Selling Expense = $15,000
Therefore, Buedgeted Selling Expense = $327000
Answer:
Parent's beginning of the year Retained Earnings
Explanation:
"The equity method is an accounting technique used by a company to record the profits earned through its investment in another company. With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.
When the investor has a significant influence over the operating and financial results of the investee, it can directly affect the value of the investor's investment. The investor records its initial investment in the second company's stock as an asset at historical cost. Under the equity method, the investment's value is periodically adjusted to reflect the changes in value due to the investor's share in the company's income or losses. Adjustments are also made when dividends are paid out to shareholders."
Reference: Tuovila, Alicia. “Equity Method Definition.” Investopedia, Investopedia, 8 Oct. 2019
Answer:
We'll start by putting into consideration, the large sample variance at the numerator.
Barron's Variance will be represented using 1 as the subscript.
i.e.
1 = $583 million
2 = $489 million
So,
0: 1²= 2²
: 1² ≠ 2²
=1² / 2²=
= $583 million² / $489 million²
= 583²/489²
= 1.42
Degrees of freedom 15 and 9
Using F table, area in tail is greater than 0.10.
Two-tail p-value is greater than .20
Exact p-value corresponding to F= 1.42 is .5874 (See F table)
p-value > .10
So,we do not reject 0.
We cannot conclude there is a statistically significant difference between the variances for the two companies.