Answer:
The correct answer is c. Prospect theory.
Explanation:
Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.
Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.
$60, because 4 percent of 300 is 12, and 12*5 years is $60 earned through interest.
The answer is 60.
Answer: Clustering
Explanation: In simple words, clustering refers to a form of communication in which a single person transmits the message to the sub groups and this cycle follows on. The individuals to which message is transmitted are not randomly selected.
In the given case, John wants to know the factors for which the potential customer wants to purchase his brand products. However due to higher population on target individual analysis is not feasible.
Thus, John should opt for Cluster by making subgroups for the flow of information.
Answer:
Incremental cash flow= $1,369.863~ $1,370
Explanation:
In accrual accounting, accounts receivable gives a measure of revenue that a business has earned.
Given the annual revenue as $25,000. To get the daily revenue
Daily revenue= Annual revenue/ 365
Daily revenue= 25,000/365
Daily revenue= $68.493
Customers are expected to pay within 20 days, so for every 20 days
Incremental cash flow= 20 days* 68.493
Incremental cash flow= $1,369.863~ $1,370
