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3 years ago

Define securitization.

2 answers:

7 0

The conversion of an asset especially a lone into marketable securities , typically for the purpose of raising cash by selling them to other investors

exis [7]3 years ago

7 0

Answer:

The conversion of an asset, especially a loan, into marketable securities, typically for the purpose of raising cash by selling them to other investors.

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A monopolist finds that a person’s demand for its product depends on the person’s age. The inverse demand function of someone of

KiRa [710]

Explanation:

A manufacturer of computer memory chips produces chips in lots of 1000. If nothing has gone wrong in the manufacturing process, at most 7 chips each lot would be defective, but if something does go wrong, there could be far more defective chips. If something goes wrong with a given lot, they discard the entire lot. It would be prohibitively expensive to test every chip in every lot, so they want to make the decision of whether or not to discard a given lot on the basis of the number of defective chips in a simple random sample. They decide they can afford to test 100 chips from each lot. You are hired as their statistician.

There is a tradeoff between the cost of eroneously discarding a good lot, and the cost of warranty claims if a bad lot is sold. The next few problems refer to this scenario.

Problem 8. (Continues previous problem.) A type I error occurs if (Q12)

Problem 9. (Continues previous problem.) A type II error occurs if (Q13)

Problem 10. (Continues previous problem.) Under the null hypothesis, the number of defective chips in a simple random sample of size 100 has a (Q14) distribution, with parameters (Q15)

Problem 11. (Continues previous problem.) To have a chance of at most 2% of discarding a lot given that the lot is good, the test should reject if the number of defectives in the sample of size 100 is greater than or equal to (Q16)

Problem 12. (Continues previous problem.) In that case, the chance of rejecting the lot if it really has 50 defective chips is (Q17)

Problem 13. (Continues previous problem.) In the long run, the fraction of lots with 7 defectives that will get discarded erroneously by this test is (Q18)

Problem 14. (Continues previous problem.) The smallest number of defectives in the lot for which this test has at least a 98% chance of correctly detecting that the lot was bad is (Q19)

(Continues previous problem.) Suppose that whether or not a lot is good is random, that the long-run fraction of lots that are good is 95%, and that whether each lot is good is independent of whether any other lot or lots are good. Assume that the sample drawn from a lot is independent of whether the lot is good or bad. To simplify the problem even more, assume that good lots contain exactly 7 defective chips, and that bad lots contain exactly 50 defective chips.

Problem 15. (Continues previous problem.) The number of lots the manufacturer has to produce to get one good lot that is not rejected by the test has a (Q20) distribution, with parameters (Q21)

Problem 16. (Continues previous problem.) The expected number of lots the manufacturer must make to get one good lot that is not rejected by the test is (Q22)

Problem 17. (Continues previous problem.) With this test and this mix of good and bad lots, among the lots that pass the test, the long-run fraction of lots that are actually bad is (Q23)

7 0

3 years ago

Under the corporate form of business organization, a.stockholders wishing to sell their corporate shares must get the approval o

BARSIC [14]

Answer:

The correct option is B.

Explanation: A corporate form of business organization is an organization which has an existence that is independent of its owners, meaning that the organization exists separately from its owner(s).

In other words, Corporations are business organizations that have powers and liabilities which are separate and distinct from those of its owners.

Corporate organizations are by far, the easiest to forms of incorporated structures to transfer, whether this is part or the whole company. What this means that a major attribute of a corporate organization is that ownership rights in the corporation can be easily transferred from one person to another, and this can be either a part of the organization, or the whole organization.

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3 years ago

Assume that at the current market price of $5 per unit of a good, you are willing and able to buy 20 units. Last year at a price

sammy [17]

Answer:

The correct answer is the demand has increased.

Explanation:

At the market price of $5/unit, the quantity demanded is 20 units.

Last year at the price level of $4, the quantity demanded was 20 units.

We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.

When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.

6 0

3 years ago

A homeowner from State A hired a contractor from State B to build a vacation home for her in State C. The parties signed the con

Katen [24]

Answer:

The Home owner commenced the action in a state A court ( C )

Explanation:

The Defendant ( the contractor) can decide to transfer the case from a state court to a federal court within the same state in which the case was filled by the The home owner if the federal court has the Jurisdiction to rule on the case

Since the contract was signed in state A under the laws of the state the case is definitely a state case and the Homeowner's move to remand the case to a state court with the argument that the Federal court lacks proper Jurisdiction is in order. The court decision on the matter will be based on the fact that the Homeowner commenced the action in a state A court where the contract was signed.

6 0

3 years ago

Household behavior with respect to changes in income can be described by the marginal propensity to consume (MPC) and the margin

Citrus2011 [14]

Answer: Greater the MPC

Explanation:

The Marginal Propensity to consume refers to how much Economic consumption increases or decreases due to a change in income.

The formula for MPC is;

= Change in Consumption/Change in Income.

Consumption is a major component of GDP so it has a direct influence on Economic output. In other words, the larger the level of consumption, the higher the higher the output.

As evident from the equation, if the change in consumption is higher than the change in income, the MPC will be larger. A larger MPC therefore corresponds to a higher Consumption.

If a higher Consumption leads to a larger output and a larger MPC corresponds to a higher Consumption then that means that a higher MPC leads to a larger output.

5 0

3 years ago

Define securitization.​

Define securitization.