BUSI 620 – Test 1
The level of sales in May, June, July, and August were 84, 92, 83, and 89,
respectively. What is the four period moving average forecast of sales in
September? 87
If the t ratio for the slope of a simple linear regression equation is equal to 1.614
and the critical values of the t distribution at the 1% and 5% levels of significance,
respectively, are 3.499 and 2.365, then the slope is
NOT Significantly different from zero at the 1% level but not at the 5% level
Which of the following is a leading economic indicator? Stock prices, 500
common stock
Economies of scope refers to the decrease in average total cost that can occur when
a firm
Produces more than one product
The forecast level of sales for the month of May was 240 units. Actual sales in
May turned out to be 200 units. Use an exponential smoothing coefficient of 0.8 to
forecast sales for June 208 …(200)(0.80)+(240)(0.20)=208
Application of simple linear regression analysis to the estimation of a demand
equation has yielded the following: Q = 24 2 P If the current product price is P=$6
and the quantity sold per time period is Q=10, then the error (e) for the current time
period is equal to (actual quantity sold estimated quantity sold) -2
One difference between foreign and domestic demand for a commodity exported
by the U.S. is that
Foreign demand depends on the exchange rate between domestic and foreign
currencies
Monica quit her $50,000 per year job, purchased a building that was previously
rented by the operator of a candy store for $1,500 per month, and used the space to
, breed and sell tropical fish. In her first year she made a business profit of $60,000.
What was her economic profit? She made an economic loss of $8000
As the economy emerged from the most recent recession, household income rose
by 6%. Over the same period, total expenditures on beef increased by 3%.
Assuming that all other economic variables were held constant, Beef must be a
normal good
Which of the following would be referred to as "outsourcing"?
Subcontracting production to firms in other countries
Which of the following is a question that is uniquely relevant to the subject of
business ethics?
Should a firm buy foreign products that are made with child labor
Of the following types of costs, which is most likely a fixed cost for a shoe
manufacturer?
An NBA players lump sum royalty payment to endorse the shoe
Mr. D’s Barbeque of Pickwick, TN produces 10,000 dry rubbed rib slabs per year.
Annually Mr. D’s fixed costs are 50,000. The average variable cost per slab is a
constant $2. The average total cost per slab then is 7
Which of the following is not a qualitative forecasting technique? Time series
analysis
If the price elasticity of demand for a product is 5, and the income elasticity of
demand for the product is 2.5. If a 0.5% decrease in product price as accompanied
by a 1% decrease in consumer income, the firm's total sales will increase
-5/decrease?
Which of the following would most likely make the demand for an item more
elastic?
There are no costs of switching
The price of a firm's product increases from $5 to $6. As a result, the quantity
demanded of the product declines from 600,000 to 500,000. The price elasticity of
demand for the good is equal to (Use the arc price elasticity of demand) -1
The level of sales in May, June, July, and August were 84, 92, 83, and 89,
respectively. What is the four period moving average forecast of sales in
September? 87
If the t ratio for the slope of a simple linear regression equation is equal to 1.614
and the critical values of the t distribution at the 1% and 5% levels of significance,
respectively, are 3.499 and 2.365, then the slope is
NOT Significantly different from zero at the 1% level but not at the 5% level
Which of the following is a leading economic indicator? Stock prices, 500
common stock
Economies of scope refers to the decrease in average total cost that can occur when
a firm
Produces more than one product
The forecast level of sales for the month of May was 240 units. Actual sales in
May turned out to be 200 units. Use an exponential smoothing coefficient of 0.8 to
forecast sales for June 208 …(200)(0.80)+(240)(0.20)=208
Application of simple linear regression analysis to the estimation of a demand
equation has yielded the following: Q = 24 2 P If the current product price is P=$6
and the quantity sold per time period is Q=10, then the error (e) for the current time
period is equal to (actual quantity sold estimated quantity sold) -2
One difference between foreign and domestic demand for a commodity exported
by the U.S. is that
Foreign demand depends on the exchange rate between domestic and foreign
currencies
Monica quit her $50,000 per year job, purchased a building that was previously
rented by the operator of a candy store for $1,500 per month, and used the space to
, breed and sell tropical fish. In her first year she made a business profit of $60,000.
What was her economic profit? She made an economic loss of $8000
As the economy emerged from the most recent recession, household income rose
by 6%. Over the same period, total expenditures on beef increased by 3%.
Assuming that all other economic variables were held constant, Beef must be a
normal good
Which of the following would be referred to as "outsourcing"?
Subcontracting production to firms in other countries
Which of the following is a question that is uniquely relevant to the subject of
business ethics?
Should a firm buy foreign products that are made with child labor
Of the following types of costs, which is most likely a fixed cost for a shoe
manufacturer?
An NBA players lump sum royalty payment to endorse the shoe
Mr. D’s Barbeque of Pickwick, TN produces 10,000 dry rubbed rib slabs per year.
Annually Mr. D’s fixed costs are 50,000. The average variable cost per slab is a
constant $2. The average total cost per slab then is 7
Which of the following is not a qualitative forecasting technique? Time series
analysis
If the price elasticity of demand for a product is 5, and the income elasticity of
demand for the product is 2.5. If a 0.5% decrease in product price as accompanied
by a 1% decrease in consumer income, the firm's total sales will increase
-5/decrease?
Which of the following would most likely make the demand for an item more
elastic?
There are no costs of switching
The price of a firm's product increases from $5 to $6. As a result, the quantity
demanded of the product declines from 600,000 to 500,000. The price elasticity of
demand for the good is equal to (Use the arc price elasticity of demand) -1
