Answer:
a. The director is wrong: the lurking variable here is the severity of the blizzard. A more severe blizzard calls for more plows and keeps people at home, where they are more likely to make online purchases.
Explanation:
The director is correlating the number of snow plows on the road with the amount of online purchases - the <em>correlation </em>is high, but it doesn't mean that the increase on online purchases is <em>caused </em>by the number of snow plows on the road.
The question is: why would the number of snow plows on the road increase in the first place? Snow plows are sent out according to the amount of snow that has fallen, which means that the <em>lurking variable </em>that explains the increase in the number of snow plows and the amount of online purchases, is the severity of the blizzard in terms of how much snow has fallen. When the weather outside is too harsh or dangerous for people to go out, then it is most likely that they prefer online purchases. If the director were to analyze the correlation between the severity of the blizzard and the amount of online purchases, he would find a high correlation as well and in this case it would be the variable that actually explains the behavior of the consumers.
Remember that a lurking variable is the non-controlled variable that affects both the dependent and independent variables. In this case, there is nothing that the director can do about the severity of the blizzard besides perhaps increasing the stock whenever the severe blizzard season rolls around.
Answer with its Explanation:
Free Money means the money that has to be paid back to the money lender within a reasonable time. The money lender usually is a trader who sells his product at credit allowing his customer a reasonable period to payback. Furthermore, the free money is termed free because they are interest free lendings.
In real life, free money is can be availed by purchasing products from the suppliers if you are acting as a middle man in the distribution channel or you are a small customer and your borrowings doesn't impact the supplier. Almost all of the businesses lend free money in the form of products because allowing credit increases the sales of the organizations.
Answer: Expansionary; Short-term
Explanation:
<em>If you were on the Federal Reserve Board and you were concerned only with reducing high unemployment, you would implement an </em><em><u>expansionary </u></em><em>monetary policy with a </em><em><u>short-term</u></em><em> focus.</em>
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Expansionary monetary policy has the effect of putting more money into the economy. As there is now more money in the economy, the expectation is that there will be more consumption spending as well as investment. More consumption because people have more money and more investment because interest rates reduce when there is an increased money supply. As there is now more investment as well as the need to satiate the increased demand, more companies can expand and employ people thereby reducing unemployment.
This should however be done with a short term view because expansionary monetary policy will lead to higher inflation in the longer term making business operations less profitable.
Answer:
You should increase production.
Explanation:
According to microeconomic theory, the equilibrium point for production is where the value of marginal cost equals the price. While the marginal cost be less than price, is accurate to say that cost productions are not being minimized. This minimization of cost is reach exactly when the marginal cost equals the price.
Answer:
Answer 2 - Increase Warranty estimate percentages
Answer 3 - To Increase management bonus that is based on net income
Answer 4 - Increase warranty Estimate percentages
Explanation:
Answer 2 - Total Warranty was above their estimate, if they increase the percentage they will be closer to the actual
Answer 3 - Bonus is based on net income, the higher the net income the better your bonus, you can change this based on the percentage you estimate.
Answer 4 - the more they spend the less taxes they will incur.
