Answer:
Choosing alternative B would increase net income by $17,100
Explanation:
The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:
Alternative A Alternative B Difference between A&B
Revenues $146,100 $185,900 $39800
Costs ($104,400) ($127,100) ($22700
)
Net income $41,700 $58,800 $17,100
Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100
r
Answer:
b) A central bank is expected to achieve a 3% annual inflation rate
Explanation:
Inflation targeting is a type of monetary policy where the central bank of a country sets an inflation rate as its goal or target.
Answer:
a. The estimated coefficient for size is approximately <u>13.81</u>.
b. In the regression, two predictors are used. These two predictors are size and fireplace (FP).
Explanation:
a. The estimated coefficient for size is approximately _____.
Estimated coefficient for size = Standard Error of size * t-Stat of size = 1.2072436 * 11.439 = 13.81
Therefore, the estimated coefficient for size is approximately <u>13.81</u>.
b. How many predictors (independent variables) were used in the regression?
Independent variables can be described as variables that are changed or manipulated in order to measure the effect of their changes on the dependent variable. Independent variables are therefore also called predictors because they employed to predict the dependent variable.
In the regression, two predictors are used. These two predictors are size and fireplace (FP).
Answer:
Lenders loose and borrowers gain
Explanation:
Whenever inflation increases the value of money falls and technically erodes interest rates (hence real interest rate falls although nominal rate stays the same)
In the scenario, if the inflation rate rises to 5.5%, then the real interest rate falls further from 1.5% to (5.75% - 5.5%) 0.25%, demonstrating that the lender is loosing further.
Contrarily, the borrower will technically be paying lesser interest to the lender because he will be paying lesser money in value to the lender both in terms of interest and principal
Answer:
b its b because it says he works hard and he is willing to get a good salary
