Chapter 4 Practice Test Part I - Multiple Choice 1. Suppose that the scatterplot of (log x‚ log y) shows a strong positive correlation Which of the following must be true? I. The variables x and y also have a correlation close to 1. II. A scatterplot of (x‚ y) shows a strong nonlinear pattern. III. The residual plot of the variables x and y shows a random pattern. (a) I only (b) II only (c) III only (d) I and II (e) I‚ II‚ and III 2. What is the purpose of residual plots
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It is measured by the return on the capital resources it uses which means the combination of debt and equity. This is given by the ratio return on capital employed (ROCE)‚ return on investment or accounting rate of return. This tells investors how successful the business is by analyzing the profitability. The higher ROCE‚ the more liable it is to carry a high return to the investors resulting in higher dividends and rising share prices. The profitability is important for businesses which want
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pumped through each aqueduct per day and the following diagram shows the network of the system. From/To A R1 75 R2 40 R3 B 65 50 80 C 60 70 From/To D A 60 B 70 C E 45 55 70 F 45 90 From/To T D 120 E 190 F 130 The city water manager wants to determine a flow plan that will maximize the flow of water of the city. Formulate this problem as a max flow problem by identifying a source‚ a sink and transshipment nodes‚ and then drawing the complete network that shows the capacity of each arc. 2. The Quick
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expected gain? 4.10 Two tire-quality experts examine stacks of tires and assign a quality rating to each tire on a 3-point scale. Let X denote the rating given by expert A and Y denote the rating given by B. The following table gives the joint distribution for X and Y . 4.12 If a dealer’s profit‚ in units of $5000‚ on a new automobile can be looked upon as a random variable X having the density function fx= 21-x‚0<x<10‚elsewhere find the average profit per automobile. 4.14 Find the proportion
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Functions of Management To a degree‚ most people unknowingly possess management skills. Whether arranging their individual activities or that of children and family‚ the process to orchestrate a day’s activity can be similar to that of managing an office. What probably differs the most is the scale on which the management skills are applied and what those skills effect. What remains a commonality‚ whether managing at the level of an individual or on a corporate level‚ is the need for a process based
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Explain the aggregate supply in the short run. In the short-run‚ the aggregate supply curve is upward sloping. There are two main reasons why the quantity supplied increases as the price rises: 1. In the short-run‚ the nominal wage rate is fixed. As a result‚ an increasing price indicates higher profits that justify the expansion of output. 2. An alternate model explains that the AS curve increases because some nominal input prices are fixed in the short-run and as output rises‚ more production
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Assignment Aggregate Demand and Aggregate Supply 11. For each of following events‚ explain the short-run and the long-run effects on the output and the price level‚ assuming policymakers take no action. (a) The stock market declines sharply‚ reducing consumers’ wealth. AS1 AS2 AD1 AD2 Y2 Y1 P1 P2 P3 LRAS A B C P AD-AS diagram Output 0 Since the stock market declines sharply‚ the people’ wealth are being affected. In short run‚ it leads to a fall in aggregate demand which
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ASSIGNMENT NUMBER 1 Question Number 1: Write the definitions of aggregate demand and aggregate supply. Answer: AGGREGATE DEMAND: Aggregate demand is the sum of all demand for final goods and services at a given time and price level. AGGREGATE SUPPLY: Aggregate supply is the sum of all final goods and services that will be supplied at a given time and price level. Question Number 2: Why does short run aggregate supply curve slope upward? Answer: Because profits rise when the prices of the
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JOBNAME: McGraw−TaylorHarris PAGE: 1 SESS: 20 OUTPUT: Thu Oct 4 13:50:42 2007 SUM: 355503E1 /production/mcgraw−hill/booksxml/brownsaunders/ch1 Chapter 1 Why you need to use statistics in your research This chapter explains the importance of statistics‚ and why you need to use statistics to analyse your data. What is statistics? Put simply‚ statistics is a range of procedures for gathering‚ organising‚ analysing and presenting quantitative data. ‘Data’ is the term for facts that have
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HOW THE ECONOMY WORKS: AGGREGATE DEMAND ECO 2021_August 2014 CURIOUS QUESTIONS (for today) What is What is between and the “aggregate demand”? the relationship aggregate demand economy? Macroeconomics studies the performance of the economy. national global totals aggregates aggregate demand total demand in a country WAYS TO MEASURE THE PERFORMANCE OF AN ECONOMY output method expenditure method income method The Expenditure Method
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