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NEW QUESTION 35
An individual has an extremely rare item and intends to sell it via an English (open outcry) auction. In which situation should the seller forgo the auction and sell the item for a fixed price?
- A. The seller has no information about consumers’ willingness to pay.
- B. The seller knows that consumers’ willingness to pay varies between $1,000 and $5,000.
- C. The seller knows that consumers’ willingness to pay varies between $500 and $1,000 and knows that only one consumer is willing to pay above $900.
- D. The seller knows that consumers’ willingness to pay varies between $500 and $1,000 and knows that at least three consumers are willing to pay above $950.
Answer: C
NEW QUESTION 36
What is the first item that is usually forecasted when projecting financial statements?
- A. Net income
- B. Revenue/Sales
- C. Capital expenditures
- D. Operating expenses
Answer: B
NEW QUESTION 37
A study is conducted to determine what factors drive used car prices. The study initially examined two variables: the make of the car and the number of miles driven on the car. Not surprisingly, the group commissioning the study found that there was a strong relationship between these two variables and price. In an attempt to explain more of the variation in price the researcher added a thirdvariable:the car’s age (in years).A prior study had shown that age was a significant factor in explaining used car selling prices. When added to the new model, however, the group found that although adding age explained more of the variation in price, age was no longer significant when combined with the car’s make and miles. This problem is an example of:
- A. homoskedasticity
- B. lagged variables
- C. heteroskedasticity
- D. multicollinearity
Answer: D
NEW QUESTION 38
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