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Paladinen [302]
3 years ago
6

When setting optimal prices, which of the following is a concern when utilizing a regression of observed sales on observed price

s to set them?
a. All of these answers apply.
b. Future prices might be outside the range of past prices.
c. There is not enough variation in observed prices.
Business
1 answer:
brilliants [131]3 years ago
5 0

Answer:

The Future prices might be outside the range of past prices when setting optimal price

Explanation:

Future prices might be outside the range of past prices is a concern when utilizing a regression of observed sales on observed prices to set them because setting An optimal price enables the price at which the seller can make the highest profit possible in order to increase revenue with maximum profitability in which this can only be done when using the optimal pricing strategy for example in a situation where a company is competing in several locations and different market segments, this means clearly understanding and planning a special approach for the environments before the company makes any changes in their pricing strategy is important because Future prices might be outside the range of past prices.

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You have a portfolio that is equally invested in Stock F with a beta of .91, Stock G with a beta of 1.33, and the risk-free asse
finlep [7]

Answer:

Portfolio beta =0.7467

Explanation:

Weight of each asset = 100% / 3 = 33.33%

Portfolio beta = Respective beta * Respective weight

Portfolio beta = (1/3*0.91)+((1/3*1.33)+(1/3*0)

Portfolio beta =  0.746666666

Portfolio beta = 0.7467

Hence, the beta of the portfolio 0.7467.

6 0
4 years ago
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Roun
neonofarm [45]

Answer:

(a) $50,980.35

(b) $5,129.90

(c) $2,400

(d) $50,980.35

(e) $5,129.90

(f) $2,400

Explanation:

A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.

Formula for Future value of annuity is

F = P * ([1 + I]^N - 1 )/I

P =Payment amount

I = interest rate

N = Number of periods

(a) $1,000 per year for 16 years at 14%

F = $1,000 x ([1 + 14%]^16 - 1 )/14%

F = $50,980.35

(b) $500 per year for 8 years at 7%

F = $500 x ([1 + 7%]^8 - 1 )/7%

F = $5,129.90

(c) $600 per year for 4 years at 0%.

F = $600 x 4

F = $2,400

(d) $1,000 per year for 16 years at 14%

F = $1,000 x ([1 + 14%]^16 - 1 )/14%

F = $50,980.35

(e) $500 per year for 8 years at 7%

F = $500 x ([1 + 7%]^8 - 1 )/7%

F = $5,129.90

(f) $600 per year for 4 years at 0%.

F = $600 x 4

F = $2,400

3 0
3 years ago
Riverbed Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $72,100. Riverbed determi
Novay_Z [31]

Answer:

Please find attached solution.

Explanation:

7 0
4 years ago
The earnings of two employees are given below: employee a: 6% commission on all sales employee b: 4% commission on the first $80
aleksandrvk [35]

Employee A makes $1,200 more than Employee B for sales of $100,000.

The earnings of Employee A are: = Commission rate x Sales

                                                 = 6% x 100,000

                                                = $6,000

The earnings of employee B are = Commission on first $80,000 + Commission on anything above $80,000

= (4% x 80,000) + (8% x (100,000 - 80,000)

= 3,200 + (8% x 20,000)

= $4,800

The difference is: = Employee A commission - Employee B commission

                                          = 6,000 - 4,800

                                           = $1,200

In conclusion, Employee A makes $1,200 more than Employee B for sales of $100,000.

Commission Rate :

The commission rate is the percentage or fixed payment associated with a certain amount of sale. For example, a commission could be 6% of sales, or $30 for each sale.

Learn more about Commission rate :

brainly.com/question/22221759

#SPJ4

6 0
2 years ago
Which of the following career fields ensures that required supplies are available.
GalinKa [24]
2) Purchasing, good luck!
6 0
4 years ago
Read 2 more answers
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