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Schach [20]
3 years ago
14

A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds t

o randomly select 26 large corporations and record information in millions of dollars. A statistical analyst discovers that capital spending by corporations has a significant inverse relationship with wage spending. What should the microeconomist who developed this multiple regression model be particularly concerned with? a. Missing observations b. Collinearity c. Normality of residuals d. Randomness of error term
Business
1 answer:
Leto [7]3 years ago
5 0

Answer:  option b

 

Explanation: In simple words, collinearity refers to the condition under which some of the Independent variables in the model are related to each other. This  international between independents variables can result into incorrect results while fitting the model.

Therefore, collinearity causes problem as the analyst prepares a model on the basis that there will be two inputs one is dependent another is independent but due to this phenomenon the  expected input structure collides.

Hence from the above we can conclude that the economist should be concerned with col linearity.

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If Congress ends an investment tax credit that used to subsidize domestic investment, how would this affect the market for loana
marin [14]

Answer: Demand will fall, Interest rates will fall

Explanation:

The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.

If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.

3 0
3 years ago
Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the f
adoni [48]

Answer:

Sh. 300,001.60

Explanation:

Note: <em>Missing word has been attached</em>

Particulars                                                     Amount

Annual payments                                          86,038

x PV Annuity due 8%, 10 periods                 3.48685

Amount recorded for the leased asset      300,001.60

8 0
3 years ago
"what developed country is projected to have the steepest decline in population between now and 2050?"
weeeeeb [17]

The answer is Japan. It is decreasing at a record pace. The country lost 244,000 people in 2013 as births jumped and deaths increased. It faces the vision of losing a third of its population in the next 50 years, raising uncertainties about its economic prospects and labor market.

5 0
3 years ago
Recognition of normal balances The following items appeared in the accounting records of the Tape Box, a retail music store that
WINSTONCH [101]

Answer:

a. The DVDs, CDs, albums, and video games held for sale to customers.

Classification: Assets

b. A long-term loan owed to Citizens Bank.

Classification: Liability

c. Promotional costs to publicize a concert.

Classification: Expense

d. Daily sales of merchandise sold

Classification: Revenue

e. Amounts due from customers

Classification: Asset

f. Land held as an investment

Classification: Asset

g. A new computer purchased for office use.

Classification: Expense

h. Amounts to be paid in 10 days to suppliers

Classification: Liability

i. Amounts paid to property owner for rent.

Classification: Expense

4 0
3 years ago
Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or bu
LuckyWell [14K]

Answer:

The correct answer is True.

Explanation:

Fiduciary assignments that have as their object the realization of investments, the administration of goods or the execution of activities related to the granting of guarantees by third parties to ensure the fulfillment of obligations, the administration or surveillance of the goods on which the guarantees fall and the carrying them out, subject to the restrictions established by law; act as transfer agent and register of securities; act as a representative of bondholders; act as trustee, curator of property or as depositary of sums recorded in any court, by order of judicial authority or by determination of persons who have legal power to designate them for such purpose.

Fiduciary companies may carry out investment trust operations through commercial fiduciary contracts, concluded in accordance with legal formalities, or through fiduciary orders.

Fiduciary activities are not reported in the government-wide financial statements

They may form ordinary common investment funds integrated with monies received from various constituents or adherents for this purpose.

4 0
3 years ago
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