Refer to Figure 14-4. In a real world situation involving Rainbow Writer and Odeon, what scenario below might permit Rainbow Writer to rationally refuse an offer from Odeon of $40 per copy of the software package?
A) Odeon is considering new distribution outlets for its products.
B) Odeon hires a software developer to begin developing its own proprietary engraving software.
C) Odeon is also negotiating with FastWrite, Rainbow Writer's chief rival.
D) Odeon's competitors are also interested in bundling Rainbow Writer's software.
D
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A. higher; higher B. higher; lower C. lower; higher D. lower; lower
An estimator of ? is said to be linear if
A) it can be estimated by least squares. B) it is a linear function of Y1,…, Yn . C) there are homoskedasticity-only errors. D) it is a linear function of X1,…, Xn .
We worry that false negatives occur too often relative to false positives due to
a. Most hypotheses being false b. It being appropriate to set a high standard for acceptance of a hypothesis c. Managers having an incentive to make a false negative conclusion because they are harder for superiors to observe d. They are not too common
Of the following, which is the largest source of government funds in the long run?
A) government borrowing B) money creation C) user fees D) taxation