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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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Book store owner, Sandra Walker, has a personal check from one of her customers, payable to The Book Nook. Sandra wants to depos
german

Answer:

see below

Explanation:

Endorsing a check is communicating to the bank how a check is to be cashed. A restrictive endorsement puts limits on how a check or other financial instruments are to be used.

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4 0
2 years ago
If the price of product x rises, then the resulting decline in the amount purchased will:_____.
MissTica

If the price of product x rises, then the resulting decline in the amount purchased will<u> increase the marginal utility of this good.</u>

The difference in overall utility that results from consuming one extra unit of a good is known as marginal utility. Economists utilize the idea of marginal utility to estimate the quantity of a good that consumers will buy.

When the overall utility is increased by the consumption of an additional item, positive marginal utility occurs. On the other side, negative marginal utility arises when the overall utility is reduced by the consumption of one extra unit. Progressive taxation are frequently defended using the law of diminishing marginal utility.

Negative, zero, or positive marginal utility are all possible.

Hence, option B is the correct answer

To learn more about marginal utility here,

brainly.com/question/15561406

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