In the case of positive bias, people tend to
A) overforecast.
B) underforecast.
C) be exact.
D) be pessimictic.
A) overforecast.
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For which of the following products would a continuous advertising schedule be most appropriate?
A) swimming pool chemicals B) snow goggles C) heaters D) mosquito repellent E) lightbulbs
A small manufacturer is considering several locations for a new facility. They have identified four factors that they consider to be important for their location decision
They have decided to assign scores to the four factors, with a higher score indicating a more favorable location. Use the information in the following table to perform a factor rating to select the best location. Weight Location A Location B Location C Wages 40 30 75 90 Labor Climate 30 40 70 40 Taxes 15 80 40 90 Utilities 15 75 60 10
Suppose the real risk-free rate is 3.25%, the average future inflation rate is 4.35%, and a maturity risk premium of 0.07% per year to maturity applies to both corporate and T-bonds, i.e., MRP = 0.07%(t), where t is the number of years to maturity. Suppose also that a liquidity premium of 0.50% and a default risk premium of 2.40% apply to A-rated corporate bonds but not to T-bonds. How much higher would the rate of return be on a 10-year A-rated corporate bond than on a 5-year Treasury bond? Here we assume that the pure expectations theory is NOT valid. Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
A. 3.48 B. 3.90 C. 3.25 D. 3.74 E. 3.84?
Mariposa Sanchez is a sales representative for Sherwin Williams and her territory includes an approximately 120-mile radius of her "home" retail store. Her customers are painting contractors and facility managers of office complexes, apartment buildings, hospitals, and other businesses that might have commercial painting needs. Mariposa uses her company vehicle and spends about five hours each day in her car visiting her customers and prospecting for new business. Since her territory is so large, Mariposa puts about 200 miles on her car each day, which consumes a lot of gasoline. She tries to be economical when choosing gas stations, but it doesn't really matter how much the gas costs, she pays the price. In this case, demand for gasoline is
A. inelastic. B. elastic. C. unitary. D. variable.