The treatment of each independent variable in this manner conforms to the straightline assumptions of multiple regression analysis. This is sometimes known as additivity, because each new independent variable is added on to the regression equation
Indicate whether the statement is true or false
TRUE
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At January 1, 2012, Porter should record an asset and liability with respect to the equipment lease equal to
a. $258,726 b. $239,562 c. $275,000 d. $0
The first time Barry brought his car to Auto Lube to have the oil changed he was very satisfied with the service. The service manager consulted him several times while his car was being serviced, asked him if there were any problems with the car, recommended when additional services should be performed and answered questions directly and politely. However, when Barry went back to Auto Lube after three months to have his oil changed again, he was not satisfied with the service. The manager spoke to him only when he arrived and when he paid his bill. In addition, the manager was impatient and unfriendly during the interaction. Barry's experience at Auto Lube illustrates the ________ of services.
A. Intangibility B. Divisibility C. Perishability D. Simultaneous production and consumption E. Heterogeneity
Regarding employee stock options, which of the following is/are true?
a. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. b. Total compensation cost is the number of options the firm expects to vest times the expected value per option at the date of redemption. c. Firms amortize this total cost over the requisite service period, which is the expected period of benefit. d. The requisite service period is usually the period between the grant date and the vesting date. e. Firms do not typically remeasure most types of stock options after the initial grant date.
The best definition for reliability is
a. a measure of the degree to which data measures what you intend for it to measure. b. a measure of the accuracy and repeatability of the data. c. a measure of the relationship between two variables. d. none of the above