Answer: E) Recoding
Explanation:
Recoding refers to the changing of a variable to better suit the needs for which the variable is being collected.
The variable's parameters can be redefined using recoding to either include more information or less so that the result can be more reflective of the situation on ground.
In mixing the lowest income category with the next lowest, recoding would have occurred.
Answer:
D. -4/5
Explanation:
Given that
Wage rate = $20 per hour
Cost of capital = $25 per hour
Recall that,
Slope of isocost = -(w/r)
Where,
W = wage rate
r = rental cost of capital.
Thus,
Slope of isocost curve
= -(20/25)
= -0.8 or -4/5
Note that, the negative of the ratio is the price of the two inputs. Also isocost is a line showing the various combinations of inputs which cost the same amount.
Answer:a.
It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.
Explanation:
A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result - It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.
The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:
MONEY SUPPLY = RESERVES X MONEY MULTIPLIER
Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.
Choosing when to start a project is related to the investment timing decision.
<h3>Is an investment's timing crucial?</h3>
The following are some advantages of market timing strategy:
- Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
- When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>
The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.
<h3>What is a timing option for investments?</h3>
The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.
<h3>What is an example of an investment decision?</h3>
- Decisions on investments can be made for the long- or short-term.
- A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
- A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.
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<span>To calculate the average collection period: the average accounts receivable balance divided by average credit sales per day.
With $1,000,000 per year, that is $2739.73 per day.
The average accounts receivable is ($80,000 + $60,000) / 2 = $70,000
$70,000 / $2,739.73 = 25.6 days</span>
