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Oksana_A [137]
3 years ago
5

A natural experiment is a chance occurrence that mimics a randomized controlled trial. In order to analyze causal effects from n

atural experiments, economists make use of a statistical method known as instrumental variables, in which one variable from a natural experiment is used as an instrument for a particular independent variable of interest. Assume the independent variable of interest is x1 and the dependent variable in a regression is y. Which of the following represent necessary characteristics of a suitable instrument?
a. The instrument has at least 200 observations
b. The instrument is correlated with
c. The instrument has a conditional mean of zero
d. The instrument does not directly influence y, except through
Business
1 answer:
babymother [125]3 years ago
4 0

Answer: b. The instrument is correlated with x1.

d. The instrument does not directly influence y, except through x1.

Explanation:

Based on the information given in the question, the necessary characteristics of a suitable instrument include:

• The instrument is correlated with x1.

• The instrument does not directly influence y, except through x1.

Some of the criteria for an instrument variable are the fact that it should have a causal effect on independent variable and also the dependent variable isn't directly affected except through the independent variable which is x1 in this scenario.

Therefore, the correct option are B and D.

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if barbara falcon invests $16,751.84 now and she will receive $30,000 at the end of 10 years, what annual rate of interest will
Crank

9% of annual rate of interest will she be earning on her investment .The price of borrowing money is reflected in the interest rate on a credit card.

<h3>What is annual  rate interest ?</h3>

The price of borrowing money is reflected in the interest rate on a credit card. We utilize the annual percentage rate for this (APR). On the majority of credit cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date.

The term annual percentage rate of charge refers to the interest rate for an entire year rather than just a monthly fee or rate as applied on a loan, mortgage loan, credit card, etc. It can also be referred to as a nominal APR or an effective APR. It is an annual rate of a finance charge.

To learn more about annual rate of interest refer to:

brainly.com/question/15728540

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4 0
1 year ago
The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $14,000 Current assets $3
Sav [38]

Answer:

The sustainable growth rate is 16.52%

Explanation:

To compute the substantial growth rate, first, we have to calculate the retention ratio. The formula to compute the retention ratio is shown below:

= 1 – payout ratio

= 1 – 0.16

=0.84 or 84%

Now, we use the formula of substantial growth rate which is shown below:

= (Return on equity × retention ratio) ÷ { 1 -  (Return on equity × retention ratio)}

where,

Return on equity = (Net income ÷ total equity) × 100

                            = ($3,640 ÷ $21,560) × 100

                            = 16.88%

= (16.88% × 84%) ÷ ( 1 -  16.88% × 84%)

= 0.141792 ÷ (1 -  0.141792 )

= 0.141792  ÷ 0.858208

= 0.1652 or 16.52%

8 0
3 years ago
Let's say that you choose to buy bread in a grocery store. According to the marginal benefit and marginal cost principle, how ma
snow_lady [41]
Six is your answer because if it cost $2.00 and you have 4 it makes sense
8 0
3 years ago
Which of the following is NOT an accurate statement?
Mandarinka [93]

Answer:

The correct answer is c. Workers in high-tech fields do not need good communication skills.

Explanation:

Communication skills refer to the ability to send, receive, elaborate and issue information, ideas, opinions and attitudes of the highest quality and oriented towards personal and organizational objectives. To properly carry out their activities, administrators must have at least the basic skills of oral, written and non-verbal communication related to: communication with clients, communication with their subordinates, communication with their superiors, with the media , sensitivity to cultural differences, among others.

  • Nonverbal communication skills refer to the use of facial expressions, movements and body language for the transmission of meaning.
  • Verbal communication skills refer to both oral messages that are used most frequently and take place in personal meetings and telephone conversations, as well as written messages, which are transmitted in different modalities (memorandums, fax, letters, newsletters, etc. .).

Communication is immersed in all the activities of the administrators, intimately relating to their performance.

4 0
3 years ago
If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution,
xenn [34]
<h3>Hello there!</h3>

Your question asks if you offer up your car as a demonstration that you will pay off your loan, would your car be used as collateral?

<h3>Answer: True</h3>

The reason why your answer would be "True" is because you're offering up your car for something that could not be very certain to do.

If you offered your car as a demonstration to pay off your loan, but you don't pay off the loan, the bank has every right to take the car from you, due to the fact that the car is on collateral.

Collateral is known as something that is "forfeited" or "security" for a repayment of a loan.

In this situation, you're offering your car as collateral if you don't pay the loan back. And if you don't pay the loan back, you're going to forfeit your car to the bank in order for them to use it as a way to get money to pay off the loan themselves. Banks, bail bonds, etc. usually have people put things up for collateral to keep a "safe" measure for the loan, due to the fact that they're giving people instant money. It's just a "security" or "safety" procedure banks due in order to get something in return if the loan is not paid off, so they won't be losing money or leave empty handed.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
5 0
3 years ago
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