Answer:
d. It is best measured using the statistic variance inflation factor (VIF).
Explanation:
Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance
Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.
- VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
- VIF as a multicollinearity correction : Calculating
= σ^2 / ![[TSS j (1 - R^2j)]](https://tex.z-dn.net/?f=%5BTSS%20j%20%281%20-%20R%5E2j%29%5D)
; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j
Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service.
Answer:
$37,000
Explanation:
Working capital indicates the difference between a company's current assets and its current liabilities.
Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.
in this case,
Current assets include
Inventory $50,000
Cash at Bank $ 5,000
prepaid rent <u> $5,000</u>
Total current assets <u>$60,000</u>
current liabilities
Notes Payable $20,000
tax payable <u> $3,000</u>
Total current liabilities <u> $23,000</u>
Working capital
= $60,000 - $23,000
= $37,000
Answer:
Total production= 20,600 units
Explanation:
Giving the following information:
Marvel’s expected sales are 20,000 bookcases for the quarter. The company begins the quarter with an inventory of 3,000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter’s expected sales of 24,000 bookcases.
Sales= 20,000 units
Ending inventory= (24,000*0.15)= 3,600
Beginning inventory= 3,000 (-)
Total production= 20,600 units
Answer:
The correct answer is letter "A": Mary Beth grows cotton. She finds that she can always sell her entire crop at the market price. However, if she asks a price that is even slightly higher she cannot sell any of her cotton.
Explanation:
Perfect Competition is a market where competition is at the highest degree possible. Perfect competitive markets have the following characteristics:
- <em>All companies sell the same goods or services. </em>
- <em>All companies are price takers. </em>
- <em>All firms have relatively small market shares. </em>
- <em>Buyers have full product and price information. </em>
- <em>The industry is characterized by low or no barriers to entry and exit of the industry.</em>
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Thus, <em>in Mary Beth's case, she cannot ask for a different price than the one of the market because in a perfectly competitive market it is controlled by supply and demand. Companies cannot set the price.</em>
