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3 years ago

How do you economists use data

Business

2 answers:

never [62]3 years ago

7 0

Answer:

They use various statistical measures of data that help them in predicting the probability of the rise or fall in production or any other aspect like the job loss or the FDI and many aspects of the economy.

hope it helps

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ale4655 [162]3 years ago

5 0

Answer:

Economists use various statistical measures of data that help them in predicting the probability of the rise or fall in production or any other aspect like the job loss or the FDI and many aspects of the economy.

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Marty and Mary have jobs and contribute to the household expenses according to their income. Marty contributes 75% of the expen

Len [333]

Answer:

Answer explained

Explanation:

Firstly, we write down data & figures provided in question.

Annual household expense - $ 30,000

Marty contribution to household expenses is 75% amounting $ 22,500

Mary contribution to household expenses is 25% amounting $ 7,500

Rate of Interest on Investment - 6% per annum

Now question is how much life insurance should they purchase for marty so they can maintain current living standard and discharge other obligation in case of Marty's death.

Therefore, Insurance amount = Amount require to invest at 6% interest to provide annual interest income equals to marty's annual contribution to household expense + $ 75,000 (3x25,000) for college + $ 20,000 for nurse training + $ 55,000 for mortgage

Amount require to invest at 6% interest to provide annual interest income equals to marty's annual contribution to household expense = $ 22,500/0.06 = $ 375,000

Insurance Amount = 375,000 + 75,000 + 20,000 + 55,000 = $ 525,000

4 0

3 years ago

Average Accounting Return. Concerning AAR:a. Describe how the average accounting return is usually calculated and describe the i

evablogger [386]

Answer:

a. Describe how the average accounting return is usually calculated and describe the information this measure provides about a sequence of cash flows. What is the AAR criterion decision rule?

Average accounting return = average net income / average investment

The problem with AAR is that net cash flows are not equal to net income since depreciation expense and changes in net working capital are not accounted for by AAR.

The criterion decision rule is that projects with an AAR above a certain measure.

b. What are the problems associated with using the AAR as a means of evaluating a project’s cash flows? What underlying feature of AAR is most troubling to you from a financial perspective? Does the AAR have any redeeming qualities?

it doesn't consider net cash flows, nor time value of money. Personally, accounting is an extremely important tool but it only reflects a partial perspective of a business. E.g. a business might have a huge net income but if it doesn't have enough cash to function, it will go bankrupt. In finance, cash is king.

Personally, my biggest problem with AAR is that it doesn't consider net cash flows. I've been on situations where the company I worked for was apparently doing great, but our accounts receivables were huge and we couldn't collect money fast enough. My job was basically go to different banks and convince them of loaning us cash. The worst part was that even without being able to collect cash, we still had to pay taxes and that was another huge problem.

I believe that AAR is still used because of its simplicity. Also, taxes are paid based on accounting profits and many firms base they compensation plans on them.

8 0

3 years ago

The HR department at Top Choice Manufacturing has been asked to collect job analysis information about general worker behaviors

sineoko [7]

Answer:

The correct answer is letter "A": position analysis questionnaire.

Explanation:

Position Analysis Questionnaire or PAQ is helpful to link job duties with individuals' characteristics such as mental processes or interpersonal skills. The results of PAQ are implemented in the desired profile of different job positions within the firm and for training references. <em>PAQ is employee-oriented in nature which implies workers' behaviors are the key features to study in different jobs at different levels.</em>

7 0

3 years ago

The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.50 and a residual standard deviation of 30%

erica [24]

Answer and Explanation:

Given:

Market-index portfolio (σ) = 20% = 0.20

β = 2.50

Residual standard deviation (e) = 30% = 0.30

A. Total variance for an increase of 0.25 beta = ?

B. Total variance for an increase of 7.75% (0.0775) in its residual standard deviation = ?

Computation:

A. Total variance = Systematic Variance + Residual Variance

Total variance = β²σ² + e²

Total variance = (2.50 + 0.25)²(0.20)² + (0.30)²

Total variance = (2.75)²(0.20)² + (0.30)²

Total variance = (7.5625)(0.04) + 0.09

Total variance = (0.3025) + 0.09

Total variance = 0.3925

B. Total variance = Systematic Variance + Residual Variance

Total variance = β²σ² + e²

Total variance = (2.50)²(0.20)² + (0.30 + 0.0775)²

Total variance = (2.50)²(0.20)² + (0.3775)²

Total variance = (6.25)(0.04) + 0.14250625

Total variance = (0.25) + 0.14250625

Total variance = 0.3925

6 0

3 years ago

If the federal reserve increases the interest rate on bank deposits at the fed, banks will want to hold question 4 options: fewe

Annette [7]

If the federal reserve increases the interest rate on bank deposits at the fed, banks will want to hold <span>more reserves, so the reserve ratio will rise.</span>

4 0

3 years ago