Answer:
b. She should develop herself as the EMV of developing is $1.125 million, which is higher than the EMV of selling.
Explanation:
The probability of discovered oil = 0.25 (25%)
Selling the exploration right= Selling Price + Probability of discovered oil × Royalty% × Future Profit
= $200,000 + 0.25 × 0.25 × $7,500,000 = $668,750
Developing = Probability of finding the oil × Future Profits - Cost of Well
= 0.25 × $7,500,000 - $750,000 = $1,125,000
= $1.125 million
Therefore the EMV for selling the exploration rights is less than the developing, the landowner will develop the site by his own.
Answer:
Increase and decrease the interest rate in the economy by a certain percentage
Explanation:
The Federal Reserve can influence the prevailing interest rates. However, it cannot increase or decrease the interest rate in the economy by a certain percentage. The Federal Reserve influences interests rate by adjusting the fed funds rate. The feds fund rate is the interest rate that banks charge each other when they borrow from each other.
The Federal Reserve can lend to commercial banks, Adjust reserve requirements, and buy and sell U.S. securities.
Product-service bundling is adding Value-added services to a firm's product offerings to create more value for the customer.
An example of a study that has a false correlation caused by a lurking variable is " research scientist examines the influence of diet and exercise on a an individual's blood pressure."
<h3>What is a lurking variable in a study?</h3>
Lurking variable is known to be a kind of a variable that is said not be the explanatory variable nor can it be called the response variable but it is one that is seen to have a relationship (e.g. correlation) with the response and that of the explanatory variable.
Note that A lurking variable is one that can be falsely identify as a strong relationship that exist between variables or it is one that often hide the true relationship.
Hence, An example of a study that has a false correlation caused by a lurking variable is " research scientist examines the influence of diet and exercise on a an individual's blood pressure."
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Answer:
it is good that all business majors study this regardless, as strategic management takes place at several/multiple levels in any organization they may find themselves
Explanation:
Even though most students may never become CEOs or branch manager or department heads of departments, it is good they study strategic management as strategic management provides directions through the development of plans on how to achieve an organizations set goals.
Several other levels in an organization may require the knowledge of strategic management. These employees in these other job roles could be asked to complete strategic plans for their various departments. Also at all levels, employees are asked to make contributions towards their organizations strategic plan. This makes it important for all business majors to study.
