Answer:
d. less frequent price changes and decreased variability of relative prices.
Explanation:
We know that the Inflation is an increase in prices for a period of time that represent the loss in the purchasing power of the consumer. With attached to it, there would be rise in the level of the price that have the high amount of fluctuations in the price
So in the case when there is a decrease in inflation so it would have less frequent change in price and reduction in variability in relative prices as the prices would become stable
Hence, the option d is correct
Five years ago, Logocom made a $5 million investment in a new high-temperature material. The product was not well accepted after the first year on the market. However, when it was reintroduced 4 years later, it did sell well during the year. Major research funding to broaden the applications has cost $15 million in year 5. Determine the rate of return for these net cash flows (in $1,000 units).
Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $75,000 and total manufacturing costs of $93,500. If Boxer applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:____.
A. $0.
B. $6,000.
C. $4,000.
D. $3,333.
E. $5,000.
Answer:
Its c
Explanation:
g Last year Lexington had sales of $884,000 and paid taxes of $50,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $36,000 in interest expense. In addition, the firm incurred Variable Costs and Fixed Costs of $447,000 and $400,000 respectively. If sales increase by 5%, what should be the increase in earnings per share
Answer:
Lexington
The increase in earnings per share is 44.59%.
Explanation:
a) Data and Calculations:
Last Year 5% increase
Sales revenue $884,000 $928,200
Variable costs 447,000 469,350
Contribution $437,000 $458,850
Fixed costs 400,000 400,000
Operating income $37,000 $58,850
Interest expense 36,000 36,000
Income before tax 1,000 22,850
Income taxes 50,000 50,000
Net loss $49,000 $27,150
Increase = 44.59% ($21,850/$49,000 * 100)
Imagine that two goods are available to you: servants (X) and robots (Y). You like servants three times as much as robots. If your domestic help budget is $4,000 per month, the price (wage) of servants is $1500 per person per month, and the price (rent) of robots is $400 per unit per month, what is the value of the MktRS (market rate of substitution)
Answer: 3
Explanation:
The marginal rate of substitution simply means the rate at which one good will be exchanged for another good based on the current market price.
Since you like servants three times as much as robots, this implies that the utility that one gets from one servant is exactly like the utility that will be gotten from three robots.
Therefore, the utility function will be:
U = 3X + Y
Then, the marginal rate of substitution will be:
= MUX/MUY
= 3
The term economic tax incidence refers to Question 8 options: whether buyers or sellers of a good are required to send tax payments to the government. whether the demand curve or the supply curve shifts when the tax is imposed. the distribution of the tax burden between buyers and sellers. widespread view that taxes always will be a fact of life.
Answer:
the distribution of the tax burden between buyers and sellers.
Explanation:
Tax is a compulsory sum levied by the government on goods and services. it increases the price of goods and services
Economic tax incidence refers to who bears the burden of tax which is dependent on the elasticities of demand of the consumer and the elasticities of supply of the supplier
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Elasticity of supply measures the responsiveness of supply to changes in price. Supply can be elastic, inelastic or unit elastic
if demand is elastic and supply is inelastic, the burden of tax would be borne by suppliers.
The party between the supplier and the consumer that has a more elastic demand would bear less tax incidence and the party that has a less elastic demand would bear more tax incidence
The Public Company Accounting Oversight Board:____.
A. establishes accounting principles only for issuers.
B. interacts with the IASB in an effort to bring about convergence.
C. must report to the Securities and Exchange Commission as a matter of federal law.
D. All the above are true.
E. None of the above is true.
Answer: C. must report to the Securities and Exchange Commission (SEC) as a matter of federal law.
Explanation:
The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that was established after the disastrous accounting scandals of the early 2000s and late 1990s involving companies like WorldCom and Enron.
The purpose of the organization is to ensure that the audits of a public company are done in such a way that audit risk is reduced and the audit report is as accurate as possible. Even though they are a non-profit, the Sarbanes-Oxley Act mandates that they report to the SEC which has oversight over them.
g A producer of beverages and snack foods wants to market its products to the 18-to34-year-old demographic by providing incentives to respond instantly to time-sensitive offers redeemable at nearby stores. Which form of marketing would this producer most likely choose? Group of answer choices Podcasting Promotions Advertisement Personal sales Product placement
Answer:
The correct answer is the second option: Promotions.
Explanation:
To begin with, in the field of marketing there are many options to choose from and sometimes most of them are useful at the time of completing and implementing a strategy that targets the audience that the company is seeking for. In this case presented, where it is well established the kind of consumers the producer wants to reach, the most indicated option to use in the marketing campaign will be the promotions of the product itself and that is basically for two things. The first one because of the ages of the audience, it is most probably that they feel more related to the promotion due to the fact that sometimes most of the youth of that age is under their parents maintenance. And the second thing is because the text specifically says "time-sensitive" which is a characteristic of the promotions strategies.
Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the following information. Accumulated other comprehensive loss (PSC) $150,000 Pension plan assets (fair value and market-related asset value) 200,000 Accumulated benefit obligation 260,000 Projected benefit obligation 380,000 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the
Answer:
Pension expenses = $85,000
Explanation:
Missing word: "the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000: the projected benefit obligation was $490,000; fair value of pension assets was $276,000: the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11.000. The company's current year's contribution to the pension plan amounted to $65,000. No benefits were paid during the year. Instructions Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet.)"
Particulars Amount
Service cost $52,000
Interest on projected benefit obligation at 10% $38,000 (380,000*10%)
Actual return on plan asset ($11,000)
Unexpected loss ($9,000)
Amortization of gain or loss -
Amortization of prior service cost $15,000
Pension Expenses $85,000
Leia is considering insuring against theft the new $300 CD-player she just installed in her automobile. Her insurance agent tells her that such an option could be added to her present policy for $30 per year. The agent further states that the probability of theft is 0.2 in a given year. If she takes the insurance, what is her expected return per year
Answer: $30
Explanation:
If the CD-player is stolen, Leia would get a replacement from the insurance so her return for the year would be:
= Amount received from insurance - Amount paid in premiums
= 300- 30
= $270
If the CD player is not stolen, she will pay the premium of $30 so her return for the year would be: -$30
Expected return per year = (Probability of CD stolen * Return if stolen) + ( Probability of CD not being stolen * Return if not stolen)
= (0.2 * 270) + (0.8 * -30)
= $30
Serena purchased 10 shares of GLC, Inc. stock for $200 per share; one year later she sold the 10 shares for $220 a share. Over the year, the price level increased from 135.0 to 143.1. The tax rate on capital gains is 50 percent. If the capital gains tax is on nominal gains, how much tax does Serena pay on her gain?
Answer:
$100
Explanation:
Gain on the stock sale = Value of sold shares - Value of purchased shares
Gain on the stock sale = 10*$220 - 10*$200
Gain on the stock sale = $2,200 - $2,000
Gain on the stock sale = $200
Tax pay on the gain = Gain on the stock sale * Tax rate on capital gains
Tax pay on the gain = $200 * 50%
Tax pay on the gain = $100
List 3 things that would increase the amount you pay each month for car insurance.
Answer: 1.kilometres you would put on
2. Vehicle make/ model
3. Amount of time you’ve been driving
Explanation:
1.The more kilometres the more you pay because you’re more likely to get in an accident.
2. Vehicle make and model matters because newer and sportier vehicles are more expensive because they usually cost more
3. The newer you are as a driver the more expensive it will be because you have no experience and are more likely to get in an accident
NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers deems all of the following as unethical practices for investment advisers EXCEPT A) inability or unwillingness to disclose sources of additional fees received from those other than the customer in connection with providing advisory services to that client B) performing the initial trades in a new discretionary account with oral authorization C) charging advisory fees that are significantly higher than those charged by other advisers for similar services in that state D) recommending a security based on a rumor
Saginaw Steel Corporation has a precredit U.S. tax of $110,000 on $505,000 of taxable income. Saginaw has $205,000 of foreign source taxable income and paid $65,000 of income taxes to the German government on this income. All of the foreign source income is treated as foreign branch income for foreign tax credit purposes. Saginaw's foreign tax credit on its tax return will be: (Do not round intermediate calculations. Round your answer to nearest whole dollar amount.)
Answer: $44654
Explanation:
Based on the information given, the foreign tax credit will be allowed to the amount of the tax that is paid to foreign government which is $65000 which is then subject to the US tax limit that is applicable on that particular income which will be:
= 205000 × 110000/505000
= 44654
Therefore, the tax credit will be the one that's lesser between $65000 and $44654. Therefore the answer will be $44654.
Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each year). Vacation compensation is paid at an hourly rate of $45, based on an eight-hour work day. Rayon’s first pay period is January. It is now April 30, how much vacation liability has accumulated if the company has four employees and no vacation compensation has been paid?
Answer: $5760
Explanation:
The accumulated vacation liability is calculated below:
Number of employees = 4
Number of months = 4 Months
Vaccation is based on = 8 hours
Per hour rate = $45
Accumulated Vacation liability will now be:
= 4 × 4 × 8 × $45
= $5,760
Therefore, the amount if vacation liability that has accumulated will be $5,760
Calculate the present value of the following annuity streams: a. $6,000 received each year for 6 years on the last day of each year if your investments pay 7 percent compounded annually. b. $6,000 received each quarter for 6 years on the last day of each quarter if your investments pay 7 percent compounded quarterly. c. $6,000 received each year for 6 years on the first day of each year if your investments pay 7 percent compounded annually. d. $6,000 received each quarter for 6 years on the first day of each quarter if your investments pay 7 percent compounded quarterly.
Answer:
The present value of:
a. $6,000 received each year for 6 years on the last day of each year if your investments pay 7 percent compounded annually.
= PV = $28,599.24
b. $6,000 received each quarter for 6 years on the last day of each quarter if your investments pay 7 percent compounded quarterly.
PV = $116,764.11
c. $6,000 received each year for 6 years on the first day of each year if your investments pay 7 percent compounded annually.
PV = $28,599.24
d. $6,000 received each quarter for 6 years on the first day of each quarter if your investments pay 7 percent compounded quarterly.
PV = $118,807.49
Explanation:
a) Data and Calculations:
Annuity streams per year or quarter = $6,000
Period of annuity = 6 years
Interest rate = 7% compounded
From an online financial calculator:
a. N (# of periods) 6
I/Y (Interest per year) 7
PMT (Periodic Payment) 6000
FV (Future Value) 0
Results
PV = $28,599.24
Sum of all periodic payments $36,000.00
Total Interest $7,400.76
b. N (# of periods) 24
I/Y (Interest per year) 1.75
PMT (Periodic Payment) 6000
FV (Future Value) 0
Results
PV = $116,764.11
Sum of all periodic payments $144,000.00
Total Interest $27,235.89
c. N (# of periods) 6
I/Y (Interest per year) 7
PMT (Periodic Payment) 6000
FV (Future Value) 0
Results
PV = $28,599.24
Sum of all periodic payments $36,000.00
Total Interest $7,400.76
d. N (# of periods) 24
I/Y (Interest per year) 1.75
PMT (Periodic Payment) 6000
FV (Future Value) 0
Results
PV = $118,807.49
Sum of all periodic payments $144,000.00
Total Interest $25,192.51
Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $13,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $181,000. The desired ending cash balance is $35,000. The excess (deficiency) of cash available over disbursements for July will be:
Answer:
$14,000
Explanation:
Given the above information,
the excess cash available for Disbursement in July is computed as;
= Budgeted cash receipts total - Budgeted cash disbursement total + Budgeted beginning cash balance
= $182,000 - $181,000 + $13,000
= $14,000
Therefore, the excess(deficiency) of cash available over disbursement in July will be $14,000
On January 1, 2019, QRS Company granted 80,000 stock options to certain executives. The options may be exercised on or after December 31, 2022, and expire on January 1, 2026. Each option can be exercised to acquire one share of $1 par common stock for $5. The fair value of each options was estimated to be $3 on the grant date. What amount should QRS recognize as compensation expense for 2020
Answer:
The amount QRS should recognize as compensation expense for 2020 is $80,000.
Explanation:
NS = Number of shares granted as stock option = 80,000
FV = Fair value of the options on the date of grant = $3
N = Number of years from December 31, 2022 to January 1, 2026 = 3
Therefore, we have:
Total compensation expenses = NS * FV = 80,000 * $3 = $240,000
Amount QRS should recognize as compensation expense for 2020 = Total compensation expenses / n = $240,000 / 3 = $80,000
Classify the following items as (1) operating, (2) investing, (3) financing, or (4) significant noncash investing and financing activities, using the direct method. (a) Cash payments to employees. (b) Redemption of bonds payable. (c) Sale of building at book value. (d) Cash payments to suppliers. (e) Exchange of equipment for furniture. (f) Issuance of preferred stock. (g) Cash received from customers. (h) Purchase of treasury stock. (i) Issuance of bonds for land. (j) Payment of dividends. (k) Purchase of equipment. (l) Cash payments for operating expenses.
Answer:
(a) Cash payments to employees
Cash-flow classification: Operating activities
(b) Redemption of bonds payable
Cash-flow classification: Financing activities
(c) Sale of building at book value
Cash-flow classification: Investing activities
(d) Cash payments to suppliers
Cash-flow classification: Operating activities
(e) Exchange of equipment for furniture
Cash-flow classification: Significant non-cash activities
(f) Issuance of preferred stock
Cash-flow classification: Financing activities
(g) Cash received from customers
Cash-flow classification: Operating activities
(h) Purchase of treasury stock
Cash-flow classification: Financing activities
(i) Issuance of bonds for land
Cash-flow classification: Significant non-cash activities
(j) Payment of dividends
Cash-flow classification: Financing activities
(k) Purchase of equipment
Cash-flow classification: Investing activities
(l) Cash payments for operating expenses
Cash-flow classification: Operating activities
The annual demand for a product is 14,400 units. The weekly demand is 277 units with a standard deviation of 80 units. The cost to place an order is $28.00, and the time from ordering to receipt is eight weeks. The annual inventory carrying cost is $0.10 per unit. a. Find the reorder point necessary to provide a 95 percent service probability. (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places.)
Answer:
2589.56 units
Explanation:
Given that
Annual Demand = 14400 units
Weekly Demand = 277 units
Standard Deviation = 80 units
Ordering cost = $ 28
Lead Time = 8 weeks
Carrying cost = $ 0.10 / unit
Based on the above information
a) For a 95 percent service level, the value of z by referring to the Normal Table in Appendix A) is 1.65
The reorder point is computed as follows:
= Weekly Demand × Lead Time + Z × Standard Deviation × √ Lead Time
=277 × 8 + 1.65 × 80 × √8
= 2216+ 373.56
= 2589.56 units
Select all the correct answers.
Amber is writing to an accountant that she would like to interview to gain information about the career field. What information should she include in her letter?
a request for a list of contacts that she could also interview
a request to meet for 15 minutes to gain firsthand advice
an explanation of why she is leaving her current job
a list of the questions she intends to ask in the interview
a copy of her résumé and cover letter
Answer:
answer from edmentum for you :)
Explanation:
Answer:
b & d
Explanation:
on plato
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.31 a share. The following dividends will be $.36, $.51, and $.81 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.5 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 10 percent
Answer:
P0 = $9.0767092 rounded off to $9.08
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return
P0 = 0.31 / (1+0.1) + 0.36 * / (1+0.1)^2 + 0.51 / (1+0.1)^3 + 0.81 / (1+0.1)^4 +
[(0.81 * (1+0.025) / (0.1 - 0.025)) / (1+0.1)^4]
P0 = $9.0767092 rounded off to $9.08
Identify the simplifying assumptions usually made in net present value analysis.
A. All cash flows other than the initial investment occur at the end of periods.unanswered.
B. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.unanswered.
C. All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.
D. All cash flows occur at the beginning of the periods.unanswered.
E. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answer:
All cash flows other than the initial investment occur at the end of periods.
All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV is a capital budgeting method
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable
For example, a project costs 100. the cash flow in year 1 and 2 is $500 each. the discount rate is 10%
the NPV can be calculated using the financial calculator
NPV = $767.77
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Rommer Company purchases Daley Inc. for $4,700,000 cash on January 1, 2020. The book value of Daley Company's net assets, as reflected on its December 31, 2019 statement of financial position is $4,000,000. An analysis by Rommer on December 31, 2019 indicates that the fair value of Daley's tangible assets exceeded the book value by $525,000, and the fair value of identifiable intangible assets exceeded book value by $150,000. How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Answer:
$25,000
Explanation:
Calculation to determine How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Using this formula
Goodwill=Beginning cash-Ending book value-Fair value tangible assets-Fair value intangible assets
Let plug in the formula
Goodwill=$4,700,000-$4,000,000-$525,000-$150,000
Goodwill=$25,000
Therefore the goodwill that the company should be recognized by Rommer Company when recording the purchase of Daley Inc. $25,000
When history of management is traced back ?
A 5000Bc
B 2900 Bc
C 5100Bc
D 6100Bc
When history of management is traced back ?
A 5000Bc
B 2900 Bc ✔
C 5100Bc
D 6100Bc
Read this article describes some of Teddy Roosevelt's contemporaries. In your journal, offer suggestions for at least three more leaders who you believe also reflect the traits of those profiled in this article and explain why
Answer:
1)autocratic leader
2)democratic leader
Explanation:
1- this leader is one who works fast without consulting employees.
2- this leader consults employees and make sure everyone takes par in decision making
sorry only know 2...
The Iberia Tire Company has 3,000 tires in its inventory which are considered obsolete. Each tire originally cost the company $35 and the normal selling price was $45 per tire. Management is considering two options to reduce these inventory levels. Option one is to sell the tires directly to car dealerships for $30 per tire as opposed to the normal selling price of $45 per tire. The other option is to offer their current customers a $10 per tire rebate on their purchase. In addition to the $10 rebate, the program would cost the company approximately $24,000 to manage. They predict that either option will rid them completely of their excess The decision to sell directly to the car dealerships over offering the rebate will result in:_______
A. A $21,000 increase in profits.
B. A $9,000 increase in profits.
C. A $15,000 decrease in profits.
D. A $24,000 decrease in profits.
Answer:
B. A $9,000 increase in profits
Explanation:
Calculation to determine what The decision to sell directly to the car dealerships over offering the rebate will result in:
First step is to calculate the net selling prices for each group
Car dealership total price of sales = 3000 × 30 Car dealership total price of sales =$90,000
Current customers;
First step is to calculate the price of 1 tire
Price of 1 tire = $45 - $10 rebate
Price of 1 tire = $35
Total selling price = 35 × 3000
Total selling price= $105,000
Second step is to calculate net amount gotten from sales to customers
Net income= $105,000 - $24,000
Net income= $81,000
Now let calculate what the decision to sell directly to the car dealerships over offering the rebate will result in:
Decision to sell = 90,000 - 81,000
Decision to sell= $9,000 increase in profits
Therefore the decision to sell directly to the car dealerships over offering the rebate will result in:$9,000 increase in profits
Pierre, a cash basis, unmarried taxpayer, had $1,700 of state income tax withheld during 2020. Also in 2020, Pierre paid $425 that was due when he filed his 2019 state income tax return and made estimated payments of $1,190 towards his 2020 state income tax liability. When Pierre files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $17,450, including the state income tax payments and withholdings, all of which reduce his taxable income. a. What is Pierre's 2020 state income tax deduction
Answer:
$3,315
Explanation:
Calculation to determine Pierre's 2020 state income tax deduction
Using this formula.
2020 state income tax deduction=State income tax withheld+State income tax return amount due+State income tax liability
Let plug in the formula
2020 state income tax deduction=$1700+$425+$1190
2020 state income tax deduction=$3,315
Therefore Pierre's 2020 state income tax deduction is $3,315
A permanent reduction in inflation would a. permanently reduce the frequency of price changes and permanently lower unemployment. b. permanently reduce the frequency of price changes and temporarily raise unemployment. c. temporarily reduce the frequency of price changes and temporarily lower unemployment. d. temporarily reduce the frequency of price changes and temporarily raise unemployment.
Answer:
b. permanently reduce the frequency of price changes and temporarily raise unemployment.
Explanation:
In the field of economics, the term 'inflation' may be defined as the rise in the price of an economy for a period of time. When the price level rises or increases, fewer goods can be purchased by each unit of currency. The price of the products increases in the market.
It also affects in the rate of unemployment. But when the inflation is reduce it can temporarily rise the rate of unemployment but it permanently reduces the frequency of the price changes in the economy.
The following is an estimated demand function:
Q = 875 + 6XA + 15Y − 5P (125) (2) (−1.2)
Where Q is quantity sold, XA is advertising expenditure (in thousands of dollars), Y is income (in thousands of dollars), and P is the good's price. The standard errors for each estimate are in parentheses. The equation has been estimated from 10 years of quarterly data. The R2 was 0.92; the F-statistic was 57; the Standard Error of the Estimate (SEE) is 25. Suppose the values of the explanatory variables next period are: Advertising = $100,000; Income = $10,000; and Price = $100.
Required:
Using the above fitted regression, what is the predicted value of sales?
Answer:
The predicted value of sales is $75,037,500.
Explanation:
Given:
Q = 875 + 6XA + 15Y - 5P ……………………..(1)
Where:
Q = quantity sold = ?
XA = Advertising = $100,000
Y = Income = $10,000
P = Price = $100
Substituting the values into equation (1), we have:
Q = 875 + (6 * 100,000) + (15 * 10,000) - (5 * 100)
Q = 750,375
Therefore, we have:
Predicted value of sales = Q * P = 750,375 * $100 = $75,037,500
Therefore, the predicted value of sales is $75,037,500.
From the fitted regression, the predicted value of sales will be 1125.
The estimated demand function is given as:
Q = 875 + 6XA + 15Y − 5P
The explanatory variables will be:
Advertising = $100,000 = 100
Income = $10,000 = 10
Price = $100
The values will be put in the estimated equation and this will be:
Q = 875 + 6XA + 15Y − 5P
Q = 875 + (6 × 100) + (15 × 10) - (5 × 100)
Q = 875 + 600 + 150 - 500
Q = 1125
Learn more about demand on:
https://brainly.com/question/1245771
Suppose that we want to estimate the effects of alcogol consumption (alcohol) on college grade point average (colGPA. In addition to collecting information on GPAs and alcohol consumption, we also obtain attendance information (percentage of lectures attended, attend). A standardized test score, SAT, and high school GPA (hsGPA) are also available.
a. Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret ????alcohol.)
b. Should SAT and hsGPA be included as explanatory variables? Explain.