An organizational unit of a business that incurs costs and generates revenues is known as a(n): Profit center.
What is a profit center?In accounting, a profit center is a component or division of an organization that is thought to increase its bottom line, such as a company's sales department. The company determines its net profit and losses independently since it is regarded as a different business unit or sector.For the purpose of internal control, a profit center is an organizational unit in accounting that represents a management-oriented structure of the company. You can use either the cost-of-sales technique or the period accounting approach to examine operating outcomes for profit centers.A department inside a company that is in charge of earnings and losses is known as a profit center. It could be a department, region, or product line. Typically, a Profit Center is managed independently from the other organizational divisions in order to evaluate its performance and make decisions about its future.For instance, market research is a typical activity that generates costs without producing a direct profit. On the other hand, marketing becomes a revenue or profit center if its objectives are to make money.
An organizational unit of a business that incurs costs and generates revenues is known as a(n): Profit center.
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External stakeholders include employees, owners, and the board of director, if there is a board. True or false?.
Employees, owners, and the board of directors (if exists) are the internal stakeholders of an organization. Thus, the given statement is false.
Stakeholders are the ones who can affect and are affected by an organization’s project outcome. They are broken down into two categories: internal stakeholders and external stakeholders. Each category has its own set of requirements and priorities from the business perspective.
Internal stakeholders are also called primary stakeholders of the organization. They include employees, owners, and the board of directors who are directly involved in the activities of a business. Employees invest in the organization’s performance and for this, they are paid. Owners of business supply capital to the business. The board of directors enables efficient business operations to maximize profit and return for investors.
An organization’s external stakeholders are also referred to as secondary stakeholders. They are outside parties connected to an organization due to their shared interest. They include customers, suppliers, competitors, local communities, employee associations, and government agencies.
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Lovepop, inc. has $6,720 net working capital and $12,320 of current assets. what is its current ratio?
The current ratio is 12320/5600 = 2.2
Internet Networking capital is the distinction between a commercial enterprise's modern assets and its contemporary liabilities. net running capital has calculated the usage of line items from an enterprise's balance sheet. generally, the bigger your net running capital stability is, the much more likely it is that your company can cover its present-day duties.
Net working capital refers to the distinction between a business enterprise's total current belongings minus its general modern liabilities. therefore, net operating capital isn't always itself a cutting-edge asset, but an illustration of the value of the distinction.
Networking capital=current assets-current liabilities
current liabilities=12320-6720
=$5600
Current ratio=current assets/current liabilities
=12320/5600
=2.2
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If+the+country+of+vineland+experiences+inflation+of+150%+whereas+the+world+average+inflation+rate+is+2.75%,+then+how+would+its+currency+be+affected?
If the country of Vineland experiences inflation of 150% whereas the world average inflation rate is 2.75%, then how would its currency be affected? The value of Vineland's currency will decrease.
What are Inflation rates?Over 61 years, the United States consumer price inflation rate varied between -0.4% and 13.5%. A 4.7% inflation rate was calculated for 2021. The average annual inflation rate was 3.8% from 1960 to 2021, the observational period.According to the United States Federal Reserve, the 10-Year Breakeven Inflation Rate was 2.42% in September 2022.The obvious approach is to request a wage increase of about 8.5 percent to at least keep up with inflation, but experts warn that's not necessarily the wisest course of action. Research pay rates for average pay increases across all industries as well as for your own industry and position as your first order of business.If the country of Vineland experiences inflation of 150% whereas the world average inflation rate is 2.75%, then how would its currency be affected? The value of Vineland's currency will decrease.
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A car has a base price of $23,800.00. Options cost $356.00, $785.00, and $900.00 for stereo, wheels and paint. Destination charges are $640.00. The dealer pays 82% of the base price and 75% of the options. Determine the sticker price.
$25,000.00
$23,800.00
$26,481.00
$25,841.00
The sticker price of the car is $26,481.00 based on the component costs provided
What is the sticker price of the car?
The sticker price of the car comprises the retail price, the cost of options as well as the destination charges, which is also referred to as the cost for economy mileage, bearing in mind that sticker price is the price of car written on a sticker and affixed to a car.
The sticker price=base price+cost of stereo+cost of wheels+cost of paint+destination charges
base price= $23,800.00
cost of stereo=$356.00
cost of wheels=$785.00
cost of paint=$900.00
destination charges=$640
sticker price=$23,800.00+$356.0+$785.00+$900+$640.00
sticker price=$ 26,481.00
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A client calls her health care practitioner's office to ask about a label on a new prescription bottle that has a warning about drowsiness. what does the office manager know about prescription labels?
The FDA regulations mandate that all prescriptions must include a listing of all active and inactive ingredients and that certain preparations must include warning labels.
A prescription drug (also a prescription medicinal drug or prescription medicine) is a pharmaceutical drug that legally requires a clinical prescription to be dispensed.
Prescription drugs are medicinal drugs aimed to target specific signs or ailments, which require physician care and/or supervision. Doctors use prescriptions to prevent drug misuse, which includes over usage, re-selling, or replication and is often required when buying at a pharmacy or dispensary.
Prescribed drugs (or legend capsules) are capsules that require a prescription due to the fact they are considered to be potentially dangerous if now not used under the supervision of a certified fitness care practitioner.
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Brittany+bought+a+house+five+years+ago+for+$100,000+and+obtained+an+80%+loan.+now+the+home+is+worth+$125,000,+and+her+loan+balance+has+gone+down+$5,000.+what+is+brittany's+current+equity?
If Brittany bought a house five years ago for $100,000 and obtained an 80% loan. Now the home is worth $125,000, and her loan balance has gone down by $5,000. Brittany's current equity is $50,000
[tex]100000 * 80 = 80,000[/tex] = Loan amount
Since the home's worth changes from 100,000 to 125,000, while calculating equity we will consider 125,000 as the worth of the home
Brittany's current equity = [tex](125000 - 80000) +5000[/tex]
= [tex]45000 + 5000[/tex]
= $50,000
Equity is the ownership of assets that may be coupled with obligations or other liabilities in finance. Accounting equity is calculated by subtracting liabilities from the value of assets.
Equity guarantees that everyone receives equal treatment, opportunities, and growth. Equity seeks to identify and remove barriers that prevent certain groups from fully participating.
The definition of equity is "the state, quality, or ideal of being fair, equitable, or fair. Fairness and justice are synonymous with the concept of justice. It is beneficial not to consider justice solely as a desired state or a high value.
Hence, the answer is $50,000.
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When a u. S. Company purchases and imports electronic parts from china to use to produce mp3 players within the united states, this purchase increases the.
This purchase increases the investment component of GDP and reduces net exports, so the purchase of electronic components from China does not affect GDP.
What is GDP?
Gross Domestic Product (GDP) is the monetary value of all goods and services produced within a country's borders in a financial year. Once the market value of all goods and services is determined, the country's total GDP is calculated.
In this case, US purchases of electronic components from China increase the investment portion of GDP, but at the same time increase exports to China by the same amount and decrease net exports , so that overall US GDP No change.
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The Question was incomplete. Check below the full question.
If a US company purchases and imports electronic components from China to manufacture MP3 players in the US, does that purchase increase the (investment/government purchase/consumption) component of GDP? (increase/decrease) net exports. Therefore, the purchase of electronic components from China contributes (overall decrease/overall change/overall increase) to US GDP.
The use of anesthesia to perform dental procedures has only been pioneered in the last
decade or two.
O False
O True
Answer:
true
Explanation:
When determining productivity, which of the following is not an economic input
D. the amount of money required to buy a car, is not a factor of production.
Economists divide the elements of production into four categories: land, exertions, capital, and entrepreneurship. The effective elements are generally categorized into three organizations: land, labor, and capital. the primary represents sources whose supply is low in terms of call for and can't be expanded because of the result of manufacturing. The earnings derived from the possession of this aspect are known as a financial lease.
The four elements of production are land, exertions, capital, and entrepreneurship. they may be said to be the constructing blocks of the economic system. Expenditure does not come below the 4 predominant elements of production. The 1/3 factor of production is capital.
Disclaimer:- your question is incomplete, please see below for the complete question.
When determining productivity Which of the following is NOT a factor of production?
A. the land required for a hog farm
B. the training required to repair an airplane engine
C. the teacher required to teach an economics class
D. the amount of money required to buy a car
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What is the opportunity cost of the first 20 computers? dvd(s) c. between which two consecutive points along the ppc is the opportunity cost of dvds the highest?
10 WRONG
B and A
Two consecutive points along the PPC is the opportunity cost of DVDs increasing.
What is the opportunity cost of moving from point C to D?The opportunity cost of moving from point C to D is 40 tons of oranges. The per-unit opportunity cost of moving from point C to point D is 1/2 ton of oranges (40 tons of oranges/80 tons of pears). Economic growth is shown by a shift to the right of the production possibilities curve.What is the opportunity cost of computers?Opportunity cost is a different metric for cost. The amount of wheat that could be produced using the labor required to make one computer, in our example, is the opportunity cost of a computer. Comparative advantage is the capacity to produce a good at a lower opportunity cost than another producer.To learn more about Opportunity Cost, refer
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Benson, inc., has sales of $44,830, costs of $14,370, depreciation expense of $3,270, and interest expense of $2,390. the tax rate is 23 percent. what is the operating cash flow, or ocf?
The operating cash flow is $24.756.
Operating cash flow, cash flow provided by operations, cash flow from operations, or free cash flow from operations, refers to the amount of cash a business generates.
Operating cash flow is a measure of the amount of cash generated from a company's normal business operations. Operating cash flow indicates whether a business can generate enough positive cash flow to sustain and grow its operations, if not, the business may need outside funding to expand capital.
Operating cash flow = E bit + depreciation - taxes
Where, Ebit = sales - cost of goods - Depreciation
Here, sales = $ 44830
Cost = $14,370
Depreciation = $3270
⇒ Ebit = 4480 - 14370 - 3270
= $27,190
Now, taxes = (ebit - interest expense) × taxes rate
( 27,190 - 2390) × 23%
= 24800 × 0.23
= $ 5704
Now, Operation cash flow = 27,190 + 3270 - 5704
= $ 24,756
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Because price is not a factor in the eoq formula, quantity discounts will not affect eoq calculations.
true/ false
FALSE
If quantity discounts are offered, the EOQ might vary based on different holding costs
How do you calculate the economic order quantity?
To calculate the economic order quantity, you will need the following variables: demand rate, setup costs, and holding costs.
The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs.
Economic order quantity (EOQ) is a calculation that businesses use to determine their ideal order size, allowing them to meet demand while not overspending.
Inventory managers compute EOQ in order to reduce holding costs and excess inventory.
Economic order quantity (EOQ) is a calculation that businesses use to determine their ideal order size, allowing them to meet demand while not overspending.
Inventory managers compute EOQ in order to reduce holding costs and excess inventory.
It makes no difference whether your company sells jelly beans, appliances, furniture, or airplanes.
Finding the economic order quantity for every product you buy will almost certainly have an impact on your bottom line.
Measuring and adhering to the EOQ can benefit any business that manages inventory.
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If the mpc is .75, then a $50 billion increase in investment would result in an increase in gdp of:__________
If the mpc is .75, then a $50 billion increase in investment would result in an increase in gdp of: $140 billion decrease.
1/(1-.75)= 1/(.25) =4 = 35 billion * 4 = 140 billion decrease. A high MPC indicates that the proportion of increased income spent on goods and services approached the particular amount of that increase. Conversely, an occasional MPC means a person spent less of that increase in income and instead, put the money into savings.
You should test the equation to sway yourself that the lower the MPC of a rustic, the greater the multiplier effect for changes in GDP! The factor 1/(1 − MPC) is named the multiplier. If an issue tells you that the multiplier is 2.5, that means: Change in GDP = 2.5 × Change in AD.
The marginal propensity to consume is adequate to ΔC / ΔY, where ΔC is the change in consumption, and ΔY is the change in income. If consumption increases by 80 cents for every additional dollar of income, then MPC is capable of 0.8 / 1 = 0.8.
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An investor buys a t-bill at a bank discount quote of 2.1 with 24 days to maturity. the investor's annual rate of return on this investment was?
The investor’s annual rate of return in this investment is 2.3%
Given, here bank discount quote of 2.1% or 0.021 with 24 days to maturity.
On assuming the face value of the T bill is (F) = $10000 and price paid is (P), which can be calculated as,
P= F× { 1- (discount rate × maturity) /360}
P= 10000{ 1-(0.021× 24) /360}
= 10000× 0.9986
P= 9986$
Now, we calculate the actual annual return of the investment by formula,
Actual annual return = (F/P-1) × 360/no.of days to maturity.
= (10000/9986-1) × 360/21
= 0.023 or 2.3%
Thus, the actual annual return on the investment is found to be 2.3%.
An investment’s average yearly return over a given time period is known as its annual return . For calculating what the yearly return compounded would appear to be, the return is annualised using a geometric average calculation. Annual return can be calculated for any asset, commodity, bonds or mutual funds.
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Short-term finance deals with? the timing of cash flows. acquiring and selling fixed assets. financing long-term projects. capital budgeting. issuing additional shares of common stock.
Short-term finance deals with the timing of cash flows.
What is Short-term finance?Business finance from short-term, typically less than a year, sources is referred to as short-term financing. The same assists the organization in generating cash for operating expenses, which are often less in scale. It entails raising capital through online loans, credit lines, and invoice financing.It's also known as working capital financing, and it's utilized for things like inventory and receivables. In the majority of circumstances, this sort of financing is necessary in the business process because of the business's inconsistent cash flow or cyclical business cycle.To learn more about Short-term financing, refer to:
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Diversified portfolios had year-end assets of $279,000,000 and liabilities of $43,000,000. if diversified's nav was $42.13, how many shares must have been held in the fund?
The number of shares that must have been held in the fund is 5,601,709.
Shares is an investment app where friends invest and strategize together. Follow your friends' moves, discuss strategies and grow your investments. Simply put, equity is a percentage of ownership of a business or financial asset. An investor who holds shares in a company is called a shareholder
Stocks represent ownership of a company. When an individual buys shares in your company, they become one of the owners. Shareholders choose who runs a business and participate in making important decisions, such as whether or not to sell a business.
Assets = $279,000,000, Liabilities = $43,000,000
No of Shares = (Assets - Liabilities) / NAV = ($279,000,000 - $43,000,000) / $42.13 = 5,601,709.
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What type of financial planning focuses on issues such as paying your monthly rent, paying tuition and fees, and cost of food, while still having some funds to use for entertainment, rest and relaxation?.
Personal financial planning focuses on issues such as paying your monthly rent, paying tuition and fees, and the cost of food, while still having some funds to use for entertainment, rest, and relaxation
You can reach your financial goals by creating a personal finance plan. These goals could be anything, such as saving for your child's college tuition, creating retirement plans, or having enough money to handle immediate expenses. This depends on your income, spending, saving, investing, and personal safety.
Managing your present financial needs and long-term financial plans requires an understanding of personal finance. The sooner you take charge of your own money, the better your long-term financial prospects will be for decisions like investing or retirement planning.
Knowing the basics of personal finance will help you see ways to improve your financial situation. This information can help you build a budget for short-term needs while creating long-term financial strategies.
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The uncertainty of loss from fire, wind, or hail is a type of? a speculative risk b pure risk c risk retention d physical hazard
The uncertainty of loss from fire, wind, or hail is a type of Risk retention which loss is to be paid by insurance company .
What Does Risk Retention Mean ?
Instead of shifting the risk to an insurance company by purchasing insurance, risk retention refers to a person's or an organization's decision to assume responsibility for a specific risk it faces. That indicates that the person or business has decided against acquiring insurance to shift the cost of a loss to a third party and will cover any damages out of their own pocket.
Companies frequently decide to keep certain risks when they think that doing so will be less expensive than fully or partially insuring against them. One example of a risk that many businesses decide to keep is shoplifting losses, as opposed to obtaining or making a claim on their crime insurance policy.
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Obtaining resources and defining tasks and deadlines are part of which phase in the strategic marketing process?
a. planning
b. implementation
c. differentiation
d. evaluation
In the strategic marketing process, the execution phase includes acquiring resources and establishing tasks and deadlines.
The steps you take to market your business are meant to draw customers to it. By introducing them to your offerings and sharing content with them, you hope to pique their interest and influence their decision to work with you. To draw customers to your business, however, marketing is necessary, therefore it's important to understand how to draw customers and, more importantly, who you want to draw customers to your business in the first place. Being successful in your marketing procedures would be difficult without this crucial information. It is through strategic marketing that you may obtain this knowledge. We'll define strategic marketing in this post and outline the many stages of the process so you may advertise your company successfully, draw in clients, and grow your revenue.
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Some of the disadvantages of ______ is that the firm risks giving control of its technology to its partner and the shared ownership can lead to conflicts for control.
Joint ventures has a disadvantage is that the firm risks giving control of its technology to its partner and the shared ownership can lead to conflicts for control.
What is meant by Joint ventures ?
A joint venture (JV) is a type of business agreement in which two or more parties concur to combine their resources in order to complete a certain task. New projects or any other business endeavors may be included in this duty.
In a JV, each partner is accountable for the venture's gains, losses, and expenses. Although distinct from the participants' other economic interests, the venture is nonetheless its own legal company.
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In both price-taker and competitive price-searcher markets, short-run economic profits will lead to?
In both price-taker and competitive price-searcher markets The entry of additional firms into the market and the eventual restoration of zero long-run economic profits.
What it means to be a price taker?A price-taker is a private or company that must accept prevailing prices in a market, lacking the market share to influence market value on its own. thanks to market competition, most producers also are price-takers
A price-taker is a private or company that must accept prevailing prices in a market, lacking the market share to influence market value on its own. All economic participants are considered to be price-takers during a market of perfect competition or one in which all companies sell an identical product, there are not any barriers to entry or exit, every company features a relatively small market share, and every one buyers have full information of the market
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Stress in the workplace is an adverse reaction that people have in response to ________.
Stress at the workplace is an adverse reaction that people have in response to demands, constraints, and opportunities.
Stress at the workplace is a dynamic condition that refers to the harmful physical and emotional adverse reactions that people have when demands, constraints and opportunities do not match the resources, capabilities, and needs of the people.
Brief description of how demands, constraints and opportunities at the workplace causes stress is given below:
Demands: Demands like long working hours, unrealistic deadlines, and excessive amount of work at the workplace make people feel overwhelmed and under pressure, thus in response causing stress.Constraints: Constraints are forces that restrict people from doing what they want. For example, a projection an employee has that his skills and knowledge is not enough to complete the project correctly, thus becoming a reason for stress. Opportunities: Adverse reactions related to concerns about career opportunities, promotions and job security lead to stress at the workplace.You can learn more about workplace stress at
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Assume baldwin is producing 2,226 units of bit next year. what would bit's plant utilization be?
The bit's plant utilization is 148.4%.
calculating,
utilization = [tex]\frac{future production}{full capacity production}[/tex]
= [tex]\frac{2226}{1500}[/tex]
= 1.484 x 100
= 148.4%
A factory's use as a percentage of the total time it could be used to produce goods or the number of machines being used as a percentage of the total number that could be used is referred to as plant utilization. The factory's actual monthly or annual output is multiplied by 100, and its utilization rate is then determined by dividing the result by the factory's annual or monthly maximum output. An organization's capacity utilization rate should ideally be 100%. A business wouldn't want to maintain 100% production for very long, though. To boost its revenue, it would like to increase its production capacity.
Note that the full question is:
Assume Baldwin is producing 2,226 units of Bolt next year from 1,500 produced this year, which is at 100%. What would Bolt's plant utilization be?
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A woman bought a for $700 and then sold it for $900. she bought it back for $800 and then sold it again for $500. how much did she gain or lose on these transactions?
In these transactions she gained $300.
The first time A woman bought a necklace for $300.
Women sold $700
woman gains = Gold bought: 700-300 = $400
she brought it back for 8900.
She loss gain - bought = $400-8900 = 8500
She sold again for $800
She gain = She sold again - she was
- 8800-$500 = $300
Cost 91 = $300 (05) C₂ = $900 Selling S₁ = $700 S2= 8800
C = 4+62 $1200
S = S₁+S₂ = 8700+ $800
C = $1200.
S = 81500
gain = S-C = $1500-$1200
gain = $300.
Transaction gains or losses end result from an exchange in trade quotes among the useful foreign money and the foreign money in which an overseas currency transaction is denominated. Take the promoting price and subtract the preliminary purchase charge. The result is the benefit or loss. Take the gain or loss from the investment and divide it by way of the unique quantity or buy price of the investment. Transaction Loss approach a loss that happens because the associated Popmoney transaction turned into canceled or rescinded as unauthorized or has been lower back to us and is un- collectible.
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You have a stream of $1,000 payments, made evenly over 12 months starting today (time 0). what is the net present value of these payments using a 12 iscount rate?
NPV= Cash flow / (1+i) t −initial investment
where:
i = Required return percentage or discount rate
t = Number of time intervals
The concept of net present value (NPV) is used to calculate the current value of all projected future cash flows, including the initial capital expenditure. To determine which projects are most likely to generate the highest profit, it is frequently used in capital budgeting.
To determine the current value of a future stream of payments, one uses net present value (NPV). When capital planning, NPV is used to analyze whether a current investment will result in future positive cash flow. The discounted present value of all future cash flows associated with a project or investment will be positive and so appealing if the net present value (NPV) of that project or investment is positive.
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The effective income tax rate for the company is most likely to have an effect on amazon's:____.
The percentage of income that a corporation or individual pays in taxes is known as the effective tax rate. Instead of the marginal tax rate, it refers to the company's entire tax rate.
The term "effective tax rate" usually refers to federal income taxes and excludes state and local taxes, as well as any possible property taxes, sales taxes, and other taxes that a person may be subject to. A useful statistic for comparing the effective tax rates of two or more entities is the effective tax rate calculation. The corporation avoided nearly $5.2 billion in federal income tax in 2021 thanks to its effective federal income tax rate of 6%. Without any tax incentives, Amazon would have owed more than $7.3 billion in taxes if it had paid the statutory 21 percent tax rate on its 2021 U.S. income.
The percentage of income that an individual or corporation pays in taxes is known as the effective tax rate. The average rate at which a person's earned income, such as wages, and unearned income, like stock dividends, are taxed is known as the effective tax rate.
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The demand for exxonmobil gasoline is _______________ the market demand for gasoline in general.
The demand for ExxonMobil gasoline is more price elastic than the
market demand for gasoline in general.
What is ExxonMobil gasoline?ExxonMobil Corporation[a] (abbreviated Exxon) is an American multinational oil and gas corporation headquartered in Irving, Texas.
It is the largest direct descendant of John D. Rockefeller's Standard Oil and was formed on November 30, 1999, by the merger of Exxon (formerly the Standard Oil Company of New Jersey) and
Mobil (formerly the Standard Oil Company of New York).
Exxon, Mobil, Esso, and ExxonMobil Chemical, which manufacture plastic, synthetic rubber, and other chemical products, are the company's primary brands.
ExxonMobil is based in New Jersey.
Vacuum Oil Company was ExxonMobil's earliest corporate ancestor, though Standard Oil was its largest ancestor prior to its breakup.
The company that exists today was formed by the merger of the Standard Oil Company of New Jersey (Jersey Standard, later Exxon) and the Standard Oil Company of New York (Socony, later Mobil), each of which grew larger by acquiring other companies such as Humble Oil (which merged with Exxon) (merged with Mobil).
The merger agreement stipulated that Exxon would be the surviving entity following the merger.
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In the early days of virtual reality systems, what type of training applicaiton, developed by the bell helicopter company, used displays connected to a camera to give a satisfactory sense of reality, and ultimately led to the dist head-mounted display?.
During the early days of virtual reality systems, the training application developed by bell helicopter company was the VR technology.
A simulated experience, or virtual reality (VR), might resemble or be entirely unrelated to the real world. Virtual reality has several uses, including entertainment, particularly video games, education, such training for the military or in the medical field, and business, like virtual meetings. Aside from virtual reality, other different forms of technology comprise enhanced reality and mixed reality, also known as extended reality or XR, however definitions are still evolving as the field develops. Present-day virtual reality systems provide lifelike visuals, sounds, and other sensations that mimic a user's actual presence in a virtual environment using either virtual reality headsets or multi-projected environments
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Ace electronics bought equipment for $4,000. normally the equipment would have cost $4,500, but the supplier gave ace a special discount. ace's balance sheet should report equipment of ______.
Ace electronics bought equipment for $4,000. normally the equipment would have cost $4,500, but the supplier gave ace a special discount. ace's balance sheet should report equipment of $500.
A supplier is someone, enterprise, or entity that provides services or products to any other entity. for example, an organization that sells PCBAs to a laptop manufacturer or OEM is one example of a supplier.
A provider is a person or business that gives services or products to some other entity. The role of a dealer in a commercial enterprise is to offer wonderful merchandise from a manufacturer at an amazing rate to a distributor or store for resale.
Also, a supplier ought to offer exertions, consulting, or management offerings. A patron additionally called a purchaser in service industries, is a person or corporation that purchases items and/or offerings from you. You invoice clients or record sales receipts if they buy without delay.
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Suppose the probabilities of the recession or boom are .30, while the probability of a normal period is .40. would you expect the varaince of returns on these 2 investments to be higher or lower?
The standard deviation should decrease because there is now a lower probability of the more extreme outcomes. The expected rate of return on the auto stock is now
How is the variance calculated?
[0.3 × (–8%)] + [.4 × 5%] + [.3 × 18\%] = 5%[.3×(–8%)]+[.4×5%]+[.3×18%] = 5%
The variance is
[.3× (–8 – 5[tex])^2[/tex]] + [.4× (5 – 5[tex])^2[/tex]] + [.3×(18 – 5[tex])^2[/tex]] = 101.4
The standard deviation is √101.4 = 10.07 percent, which is lower than the value assuming equal probabilities of each scenario.
To learn more about variance, refer
https://brainly.ph/question/13423233
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