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victus00 [196]
3 years ago
6

Which of the following is NOT correct about causal regression analysis of the form Y = f(X)? A. Selection of the appropriate cau

sal variable Y is important. B. All of the options are correct. C. Selection of the appropriate causal variable X is important. D. Use of past experience to identify X is common. E. Use of economic theory to identify X is common.
Business
1 answer:
Law Incorporation [45]3 years ago
5 0

Answer:

A. Selection of the appropriate causal variable Y is important

Explanation:

We have this function, Y = f(X).

From this function we can see that Y is dependent on X. That is, it is a function of X. Y is not a causal variable. A causal variable is a variable that is able to influence the variable of interest. From this question Y is the variable of interest. It is the dependent variable. The independent variable is X and it is the causal variable.

Therefore the incorrect one is Selection of the appropriate causal variable Y is important

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Barry’s Steroids Company has $1,000 par value bonds outstanding at 13 percent interest. The bonds will mature in 30 years. If th
labwork [276]

Answer:

Total Present Value is ($1130.194 + $43.7) =   $1173.894

Explanation:

11 percent yield to maturity

TO CALCULATE: Present Value of Interest Payments

PV_A = A × PVIFA (n = 30, i = 11%)               Appendix D

 where A  =  13% of 1000 = 130

from PVIFA table , for n = 30 and i = 11%, PVIFA value is 8.6938

PV_A = $130 × 8.6938 = $1130.194

TO CALCULATE : Present Value of Principal Payment

PV = FV × PVIF (n = 30, i = 11%)          

from PVIF table , for n = 30 and i = 11%, PVIF value is 0.0437

PV = $1,000 × 0.0437 = $43.7

From above calculation we have following conclusion

Present Value of Interest Payments is  $1130.194

Present Value of Principal Payment is   $43.7

therefore Total Present Value is ($1130.194 + $43.7) =   $1173.894

6 0
3 years ago
The marginal cost curve crosses the average total cost curve at a. The efficient scale. b. The minimum point on the average tota
polet [3.4K]

Answer:

b. The minimum point on the average total cost curve

Explanation:

the marginal cost is the cost of making or producing one more additional unit of a product and then average total cost is the average of the total cost to produce units so if both these curves intersect then that means that will be the minimum point on the average total cost curve because at a point where if the marginal cost is less than the average cost then the average total cost will fall so the intersection point shows where the average total cost is a minimum because if its above that point the average total cost will rise.

6 0
3 years ago
All of the following are organization-directed benefits associated with offering unconditional guarantees except: a. the guarant
kotykmax [81]

Answer:

All of the following are organization-directed benefits associated with offering unconditional guarantees except:

a. the guarantee provides a means to avoid bankruptcy.

Explanation:

Providing or offering customers unconditional guarantees does not help the company to avoid bankruptcy.  Bankruptcy arises from inadequate financing resulting from overtrading.  Importantly, offering guarantees to customers communicates a clear performance goal to employees to improve service delivery to customers.

3 0
3 years ago
When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a:____
Gwar [14]

Answer:

c. Debit to Cash and a credit to Merchandise Inventory

Explanation:

When a buyer returns goods these are return outwards,

The correct entries to record them would be to debit cash as goods have been returned and credit the merchandise purchased so,

Debit cash account with the amount of goods returned

Credit Merchandise inventory with the amount of goods returned.

Hope that helps.

7 0
3 years ago
In the money creation process, the simple money multiplier assumes that banks hold no excess reserves. What is the consequence o
Alinara [238K]

Answer:

If banks hold excess reserves, then the money multiplier will be smaller.

Explanation:

It is easier to understand using an example:

required reserve rate = 5%

money multiplier = 1 / 5% = 20

if $100 are injected in to the economy and they are deposited in the banking system, the money supply will increase by $100 x 20 = $2,000. But this calculation only works if banks lend 100% of the loanable funds, but if instead banks only lend $90, instead of $95 ($100 x 95%), then the money multiplier will be 1 / 10% = 10. In this case, the money supply will only increase by half

7 0
3 years ago
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