- Study guides, Class notes & Summaries

Willingness to Pay (WTP) [ Ans: ] the maximum price an individual is willing to pay for a good or service Does a free good or service mean the WTP is 0? [ Ans: ] No Is WTP affected by price? [ Ans: ] No, it is an individual value developed by a variety of factors, but price is not one of them. Are demand curves affected by price? [ Ans: ] No, a change in price will move along the demand curve, but will not shift the curve. The demand curve shifts _________ as WTP decreases. [ ...

Accounting Costs [ Ans: ] A measure of the direct cost incured in partaking in a specific business endeavor; cost reported in a company's financial statements that serve to give an accurate description of where the firm's money is being spent. Advertising Elasticity of Demand (AED) [ Ans: ] A measure of the responsiveness of a consumer demand for one product or service to change in advertising expenditures for that product or service; mathematically calculated as the perc...

histogram [ Ans: ] displays the frequency, or number, of data points (often called observations) that fall within specified bins - round up for bins in histograms (if 3.2 it will roll into bin for 4) outlier [ Ans: ] a data point that is more than a specified distance below the lower quartile or above the upper quartile of a data set mean [ Ans: ] average; The mean is equal to the sum of all of the data points in a set, divided by nn, the number of data points (excel: average( ...

Which of the following events would, all else equal, cause a rightward shift of the demand curve for yachts? Select all that apply. [ Ans: ] A decrease in the price of yachts A change in the price of yachts would not shift the demand curve for yachts. Price changes only affect quantity demanded, not overall demand. An increase in household income is correct An increase in income would allow more households to be able to afford yachts, shifting the overall demand for yachts at...

Net Present Value [ Ans: ] Is a calculation of the present values of all the cash inflows and outflows of a project or investment. Excel formula =NPV(E4,B3:B12)+B2 Remember,for NPV you have to manually add the negative outflow from time zero related to the initial investment. Asset/Expense Accounts [ Ans: ] Asset and expense accounts increase with debit and decrease with credit. Income Statement [ Ans: ] Shows a company's financial performance, because it shows the accumulat...

Skewness [ Ans: ] Skewness measures the degree of a graph's asymmetry. If the right tail is longer, we say the distribution is skewed to the right or "right-tailed." Likewise, if the left tail is longer, we say the distribution is skewed to the left or "left-tailed." Rules of thumb for the normal distribution [ Ans: ] About 68% of the probability is contained in the range reaching one standard deviation away from the mean on either side: P(μ−σ≤x≤μ+σ)≈...

Skewness [ Ans: ] Skewness measures the degree of a graph's asymmetry. If the right tail is longer, we say the distribution is skewed to the right or "right-tailed." Likewise, if the left tail is longer, we say the distribution is skewed to the left or "left-tailed." Rules of thumb for the normal distribution [ Ans: ] About 68% of the probability is contained in the range reaching one standard deviation away from the mean on either side: P(μ−σ≤x≤μ+σ)≈...

Quantitative [ Ans: ] Can be measured in numbers Qualitative [ Ans: ] Need dummy to make it measurable in numbers Finding a Percent [ Ans: ] =percentile(array,k) Square Root [ Ans: ] =SQRT(#) Norm Distribution [ Ans: ] =(x,mean,standard_deviation,cumulative =(z,cumulative) Sum [ Ans: ] =sum(A2:A11) To Find Random Data [ Ans: ] =Rand() X Is The [ Ans: ] Independent Variable Y Is The [ Ans: ] Dependent Variable Revenue [ Ans: ] Annual income from which public expenses are...

Diminishing Marginal Returns [ Ans: ] An economic relationship stating that a consumer's willingness to pay for a product should decrease for additional units of a product (i.e. the tenth milkshake will not taste as good as the first). Demand Curve, Market [ Ans: ] A graphical representation of the willingness to pay of all buyers for various quantities of a product or service. The market demand curve is the horizontal sum of each individual's demand curve at a given pric...