Which of the following investments choices is least risky?

Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a rate of 5%, then this will caus

12345 [234]

If capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

Given,

Labor's share of output = 60%

Capital's share of output = 40%

Labor grows on a rate of = 5%

Capital grows on a rate of = 5%

Thus, output will grow at a rate of = ?

SR(t) = Δy/Δt/Y - (αΔk/Δt/k(t) + (1-α)(ΔL/Δt/L(t))

Here, α = 60%

So, labor's share = (1 - 0.6) × 5 = 2%

Capitals contribution = 0.4 × 5 = 2%

Implied rate of growth in technology is also given,

SR = (5) - (2+2)

= 1%

Hence, if capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

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8 0

1 year ago

The manager of a computer software company wishes to study the number of hours senior executives by type of industry spend at th

miskamm [114]

Answer:

Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

Explanation:

The given data is

Banking Retail Insurance

12 8 10

10 8 8

10 6 6

12 8 8

10 10 10

The results of excel are:

Anova: Single Factor

SUMMARY

Groups Count Sum Average Variance

Column 1 5 54 10.8 1.2

Column 2 5 40 8 2

Column 3 5 42 8.4 2.8

1) Let the null and alternate hypotheses be

H0: u1=u2=u3 i.e all the three means are equal and

Ha: Not all three means are equal

2) The significance level is set at ∝ =0.05

3)The test statistic to use is

F= sb²/ sw²

which has F distribution with v1= k-1 →3-1=2 and v2= n-k →15-3=12 degrees of freedom

After calculations the following table is obtained.

ANOVA

Source SS df MS F P-value F crit

of Variation

B/w Groups 22.93 2 11.467 5.733 0.01788 3.885

Within Groups 24 12 2

Total 46.93 14

4) The critical region is F ≥ F(0.05, 2,12) = 3.885

5) Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

4 0

3 years ago

In the context of business products, unprocessed extractive or agricultural products are called _____.

klasskru [66]

Answer:

In the context of business products,unprocessed extractive or agricultural products are called RAW MATERIAL

Explanation:

Raw material is the basic material from which a product is made or it can be defined as materials or substance in the primary production or manufacturing of goods

6 0

4 years ago

Read 2 more answers

Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units

Dennis_Churaev [7]

Answer:

Margin of safety= $2,651

Explanation:

Giving the following information:

Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units is 3,400, and expected sales in units are 4,500

Margin of safety= 4,500*2.41 - 3,400*2.41= $2,651

4 0

3 years ago

Alpha Company purchased, on account, 3,500 pounds of raw materials at $9 per pound on January 2, 2017. The production manager re

yaroslaw [1]

Answer:

January 2, 2017

Raw Materials $31,500 (debit)

Trade Payable $31,500 (credit)

January 15, 2017

Work In Process $22,500 (debit)

Raw Materials $22,500 (credit)

Explanation:

January 2, 2017

Raw Materials $31,500 (debit)

Trade Payable $31,500 (credit)

3,500 pounds × $9 per pound = $31,500

Recognise the Asset - Raw Materials Inventory and Recognise the Liability - Trade Payable

January 15, 2017

Work In Process $22,500 (debit)

Raw Materials $22,500 (credit)

2,500 pounds × $9 per pound = $22,500

Recognise Cost of Manufacture - Work In Process and De-recognise the Asset - Raw Materials

4 0

3 years ago