1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
10

What are the four key assumptions examined in specification analysis in the case of simple​ regression? A. Four key assumptions

examined in specification analysis are 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range. 2. Constant variance of residuals for all values of the independent variable. 3. Fixed costs are allocated as if they are variable. 4. The relationship between the cost driver and the cost is not stationary. B. Four key assumptions examined in specification analysis are 1. Independence of residuals. 2. Normal distribution of residuals. 3. Fixed costs are allocated as if they are variable. 4. The relationship between the cost driver and the cost is not stationary. C. Four key assumptions examined in specification analysis are 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range. 2. Constant variance of residuals for all values of the independent variable. 3. Independence of residuals. 4. Normal distribution of residuals. D. None of the above are correct.
Business
1 answer:
bearhunter [10]3 years ago
4 0

Answer:

C. 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range. 2. Constant variance of residuals for all values of the independent variable. 3. Independence of residuals. 4. Normal distribution of residuals.

Explanation:

The four keys assumptions that are examined in the case of simple regression with respect to the specification analysis is given below:

1. There should be relationship between the dependent and independent variable and that should be linear and do not cross the relevant range

2, The residual variances of the independent variable would remain the same

3. Residual independence

4. Residual normal distribution

These four should be considered

Hence, the option c is correct

You might be interested in
If an investment is considered “volatile”, it means...
never [62]
A lower volatility means<span> that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time. One measure of the relative volatility of a particular stock to the market is its beta.</span>
7 0
3 years ago
Read 2 more answers
Tesla crafts imitation dream catchers in her spare time. her father constantly encourages her to sell them on ebay. when she fin
Setler [38]
<span>The scenario in which Tesla, who crafts imitation dream catchers in her spare time and because her father constantly encourages her to sell them on ebay. she finally agrees to sell them, but she notices that while she still enjoys making the dream catchers, she no longer does it for fun—she does it to make money  this is an example of the over justification effect.
</span> The over justification effect<span> occurs when </span>some extrinsic reward (money for example) leads to a reduction in a person's intrinsic motivation.
3 0
4 years ago
Consider a firm which produces T-shirts according to Q = L^0.5, where Q denotes output and L is labor input. The domestic wage i
Luden [163]

From the calculation below, the profit-maximizing labor input is 0.0625, and the profit of the firm is 0.125.

<h3>How do we determine profit-maximizing labor input and profit?</h3>

From the question, we can obtain:

R = Revenue = Q*P = L^0.5 * 1 = L^0.5

C = Cost = w * L = 2L

P = Profit = R - C = L^0.5 - 2L

To obtain the profit-maximizing labor input, the first derivative of P is taken, equated to zero, and we solve for L as follows:

P' = 0.5L^-0.5 - 2 = 0

0.5L^-0.5 = 2

L^-0.5 = 2 / 0.5

L^-0.5 = 4

L^(-0.5/-0.5) = 4^(-1/0.5)

L = 0.0625 ----> profit-maximizing labor input

The profit (P) of the firm can now be calculated by substituting L = 0.0625 into the P function as follows:

P =  0.0625^0.5 - (2 * 0.0625) = 0.125 --------> Profit of the firm

Learn more about profit function here: brainly.com/question/16866047.

#SPJ1

4 0
2 years ago
You are the mayor of a town with 20,000 residents. Your economic development agency recently conducted a survey in which the 20,
mars1129 [50]

Answer:

b

Explanation:

The total benefit from building the library = 20.000 x $40 = $800,000

The total benefits exceeds the cost of building the library, so the library should be built.

Since all the residents would benefit from the library, all the residents should pay for the library. Thus, all residents should be taxed .

7 0
4 years ago
Which of these activities will most likely impose an external cost? a. Betty plants flowers in her garden. b. Bonnie gets a flu
Firdavs [7]

Answer: C. Bridget drives her car after having too much alcohol to drink.

Explanation:

The external cost, also known as third party cost, is all negative cost that a third party receives for a good buying for us, that is, the negative effect that will happen for something that we consume. For example, when we buy a vehicle, the external cost is the emission of gases that are harmful to the environment.

In this case, the external cost is the danger to drivers and pedestrians because Bridget bought alcohol and then drove.

<em>I hope this information can help you.</em>

5 0
3 years ago
Other questions:
  • What is a franchise?
    13·1 answer
  • List four disadvantages of bankruptcy
    15·2 answers
  • Compare revolving credit and closed-end credit.
    6·1 answer
  • If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usu
    15·2 answers
  • In geoffrey chaucer’s time, the makers of the fine objects we can see today in the world’s great art museums learned their trade
    10·1 answer
  • A government ____ tries to slow down business entry inton certain markets
    7·1 answer
  • Steve is the librarian in his city's library. The library provides group diability insurance where premiums are paid by employee
    10·1 answer
  • Demand for a product is 500 units per month. The company incurs a fixed order placement, transportation, and receiving cost of 4
    10·1 answer
  • A woman sells her home for $450,000. She had purchased it for $300,000 and has lived there for three years. How much will she ow
    13·1 answer
  • Effective managers understand the importance of clear communication using different channels to advance the _________ strategy.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!