In regression analysis, extrapolation is performed when you
A. attempt to predict beyond the limits of the sample.
B. have to estimate some of the explanatory variable values.
C. have to use a lag variable as an explanatory variable in the model.
D. do not have observations for every period in the sample.
Answer: A
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Which of the following defenses by a surety will be effective to avoid liability?
a. Lack of consideration to support the surety undertaking. b. Insolvency in the bankruptcy sense of the debtor. c. Incompetency of the debtor to make the contract in question. d. Fraudulent statements by the principal debtor that induced the surety to assume the obligation and that were unknown to the creditor.
Identify which of the following statements is false.
A) A corporation must file an information return with the Internal Revenue Service within thirty days of adopting a resolution to liquidate. B) The adoption of a formal plan of liquidation can provide additional benefits under tax laws to the corporation and its shareholders. C) A plan of liquidation must be produced in writing in order to be accepted by the Internal Revenue Service. D) The adoption of a plan of liquidation permits a parent corporation a three-year time period to carry out the complete liquidation of its subsidiary.
A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide earnings over a three-year period as described below.
Based on the wealth maximization goal, the financial manager would choose ________.
A) Asset 1
B) Asset 2
C) Asset 3
D) Asset 4
Using the table in the handbook, the present value of $12,000 for six years compounded at 6% semiannually is:
A. $12,814.08 B. $8,416.80 C. $8,461.08 D. $8,614.80 E. None of these