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iren2701 [21]
3 years ago
8

A customer, who needs to drive to work in a Wisconsin winter, has a critical need to use the product Ice Melt. For him as a cons

umer Ice Melt has an inelastic demand because he needs to drive to work. Which type of factor is affecting elasticity in this scenario?
Business
1 answer:
Blizzard [7]3 years ago
5 0

Answer:

Urgency / Postponement leads to customer inelastic demand of ice melt.

Explanation:

Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price

Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,

Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price

Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.

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If jasmine sleeps for 12 hours each night and takes two naps during the day, jasmine is most likely:
Maurinko [17]
<span>1 year old. A one year old child should sleep at least for 12 hours a day and the rest should occur as naps. It is the evidence of healthy body conditions. The baby during the period undergoes rapid metabolic actions which need much rest in the form of sleep.</span>
8 0
3 years ago
According to the Capital Asset Pricing Model (CAPM), correctly priced securities:
miskamm [114]

Answer:

A) have zero alphas

Explanation:

Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.

This is why the CAPM model only considers beta in its calculation.

5 0
3 years ago
The number of persons coming through a blood bank until the first person with type A blood is a random variable Y with a geometr
GenaCL600 [577]

Answer:

a. ½(Y² - Y) is an unbiased estimator of the variance.

b. 2 Standard Error = 2√(Y²/2 - Y/2)

Explanation:

Given

E(Y) = 1/p

V(Y) = (1 - p)/p²

Simplifying V(Y)...

V(Y) = 1/p² - 1/p

Because V(Y) = 1/p² - 1/p and E(Y) = 1/p,

We'll guess that there might be an unbiased estimator of shape

aY² + bY.

Solving E(aY² + bY)...

First, E(Y²) = V(Y) + (E(Y))²

Substituting the values of V(Y) and E(Y);

E(Y²) = 1/p² - 1/p + (1/p)²

E(Y²) = 1/p² - 1/p + 1/p²

E(Y²) = 2/p² - 1/p

With the above,

E(aY² + bY) is then equal to

E(aY² + bY) = 2a/p² - a/p + b/p

The above equation is equal to V(Y), if and only if

a = ½ and b = -½

-------------- Checking------------

Let E(aY² + bY) = V(Y)

i.e.

2a/p² - a/p + b/p = 1/p² - 1/p

Multiply through by l

2a/p - a + b = 1/p - 1

Comparing right hand side to left hand side

2a/p = 1/p ----- Equation 1

And

- a + b = - 1 ------- Equation 2

Solving Equation 1 (Multiply both sides by p)

2a = 1

So, a = ½

Substitute ½ for a in Equation 2

-½ + b = -1

b = -1 + ½

b = -½

------------ End --------------

Thus ½(Y² - Y) is an unbiased estimator of the variance.

b.

2 Standard Error is given by

2√V(Y)

= 2√(1/p² - 1/p)

= 2√(Y²/2 - Y/2)

6 0
3 years ago
Sweet Sue Foods has bonds outstanding with a coupon rate of 5.02 percent paid semiannually and sell for $1,948.34. The bonds hav
Minchanka [31]

Answer:

5.15%

Explanation:

Following data provided in the question

Coupon rate = 5.02%

Present value of the bond = $1,948.34

Par value = $2,000

Time period = 17 years

By considering the above information, the current yield on the bond is

= (Par value × coupon rate interest) ÷ (Present value of the bond)

= ($2,000 × 5.02%) ÷ ($1,948.34)

= 5.15%

5 0
3 years ago
Giving consumers product brochures to take home with them helps with ________, since many of them will not remember the details
Phoenix [80]

It should be noted that Giving consumers product brochures to take home with them helps with selective retention.

This will help them to be able to remember the details they heard about in the store and make decisions.

<h3>What is selective retention,?</h3>

selective retention to the customer will give them the chance to make decisions on the product.

Learn more about selective retention, at;

brainly.com/question/9261004

3 0
2 years ago
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