What is meant by inflation targeting? Why do most of the Central
Banks now days are following inflation targeting?

Answers

Answer 1

Inflation targeting is a monetary policy framework adopted by central banks to guide their actions in achieving a specific inflation rate target.

Under inflation targeting, the central bank sets an explicit target for the rate of inflation and adjusts its policy instruments, such as interest rates, to influence inflation towards that target. The primary objective of inflation targeting is to maintain price stability and control inflationary pressures in the economy. By focusing on achieving a specific inflation rate, central banks aim to promote stable and predictable price levels, which are crucial for economic growth, investment decisions, and maintaining the purchasing power of consumers.

Several reasons explain why many central banks have adopted inflation targeting:

1. Clear Policy Framework: Inflation targeting provides a clear and transparent framework for central banks to communicate their objectives and actions. It helps anchor inflation expectations and enhances the credibility of monetary policy.

2. Accountability and Transparency: Inflation targeting holds central banks accountable for achieving their inflation targets. It requires central banks to explain their decisions and communicate their policy actions to the public, promoting transparency and fostering public trust.

3. Forward-Looking Approach: Inflation targeting encourages central banks to take a forward-looking approach by considering future inflation trends rather than reacting solely to past data. This approach helps prevent excessive inflation or deflation expectations from taking hold.

4. Flexibility: Inflation targeting allows central banks to respond flexibly to changing economic conditions. It gives them the freedom to adjust interest rates and other policy tools based on evolving inflation dynamics and economic outlook, promoting stability and flexibility in monetary policy.

5. International Best Practice: Many central banks have adopted inflation targeting due to its widespread use and endorsement by international organizations such as the International Monetary Fund (IMF) and the World Bank. It has become a standard policy framework for central banks globally.

While inflation targeting has its advantages, it is important to note that different central banks may adopt variations of this framework, taking into account their specific economic conditions, goals, and institutional arrangements.

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Related Questions

What is improved oven? in your own words.

Answers

Answer:

improved oven means improved cooking

If a new firm enters the car market, what do we observe in the market for cars? a) The equilibrium price decreases and the equilibrium quantity increases Ob) The equilibrium price increases and the equilibrium quantity decreases Od Both the equilibrium price and the equilibrium quantity decrease O d) Both the equilibrium price and the equilibrium quantity increase

Answers

If a new firm enters the car market, we would observe an increase in the supply of cars in the market.

An equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal. The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy

This increase in supply would lead to a decrease in the equilibrium price of cars and an increase in the equilibrium quantity of cars. Therefore, option a) The equilibrium price decreases and the equilibrium quantity increases, would be the correct answer.

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combine like terms to simplify 13q2 + 4q2

Answers

Answer:

17q^2

Explanation:

you add the like terms and 13+4 is equal to 17

Be sure to answer as 17q^2

A hotel is part of what industry?
A.
Service
B.
Wholesaling
C.
Subcontracting
D.
Cottage


Please select the best answer from the choices provided

A
B
C
D

Answers

Hopes this helps:

Answer: A. Service

Please mark as brainlist
A.
Service i did this

What animal did traders use to travel across the Sahara desert?

Answers

Traders who traveled across the Sahara desert used camels as their mode of transportation.

Camels are well-suited for desert travel due to their ability to go for long periods without water and their ability to carry heavy loads. The camels were also used as a source of food and milk for the traders. These animals were crucial to the survival of traders who braved the harsh conditions of the Sahara in order to trade goods such as salt, gold, and ivory.

The use of camels revolutionized trade in the Sahara and enabled traders to travel greater distances and carry heavier loads than ever before. Even today, camels remain an important part of the economy and culture of the Sahara region.

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Jan, an unmarried individual, gave the following outright gifts in 2017:
Donee Amount Use by donee Jones $16,000 Down payment on house Craig 15,000 College tuition Kande 5,000 Vacation trip Jan’s 2017 exclusions for gift tax purposes should total
1. $36,000
2. $33,000
3. $31,000
4. $27,000

Answers

When you add up these three exclusions, you get $16,000 + $15,000 + $5,000 = $36,000. So, the correct answer is option 1, $36,000.

Jan's 2017 exclusions for gift tax purposes should total $36,000. Here's the breakdown:
1. Jones: $16,000 (Down payment on house) - This amount is fully included in the exclusion as it is under the annual gift tax exclusion limit of $15,000 per person per year (for 2021; in 2017, the limit was $14,000).
2. Craig: $15,000 (College tuition) - This amount can also be excluded entirely under the educational exclusion provision, which allows individuals to pay for someone else's tuition without incurring gift tax. The payment must be made directly to the educational institution.
3. Kande: $5,000 (Vacation trip) - This gift is also within the annual gifta x exctlusion limit and can be fully excluded.
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Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units Standard Costs per unit:

Direct materials: 8kg at $6.50 per kg Direct labour: 4 hours at $7.00 per hour During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual costs amounted to: Direct material: 3500kgs at a total cost of $21875 Direct labour: 1720 hours at a total cost of $12212

Required: Determine the standard direct labour rate variance for June production O a. $200 U O b. $172 U OC. $280 U O d. $168 U

Answers

To determine the standard direct labor rate variance for June production, we need to compare the actual rate paid for direct labor with the standard rate.

Given:

Standard direct labor rate = $7.00 per hour

Actual direct labor rate = Total cost of direct labor / Actual hours of direct labor = $12212 / 1720 = $7.10 per hour

To calculate the standard direct labor rate variance, we use the formula:

Standard direct labor rate variance = (Actual hours of direct labor) x (Standard rate - Actual rate)

Standard direct labor rate variance = 1720 x ($7.00 - $7.10)

Standard direct labor rate variance = 1720 x (-$0.10)

Standard direct labor rate variance = -$172

Therefore, the standard direct labor rate variance for June production is $172 unfavorable (U). Option b. $172 U is the correct answer.

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Which level of government are Planning workers most likely to work for?

A) state
B) federal
C) local
D) international

Answers

I’m pretty sure it’s local.

The level of government is Planning workers most likely to work for local. Thus, the correct option is (C).

A single sovereign state's lowest levels of public administration are collectively referred to as "local government" in the United States.

When the word "government" is used in this context, it explicitly alludes to a level of bureaucracy that is geographically confined and has a set of responsibilities.

A variety of essential services for residents and companies in certain areas are handled by the local government.

Therefore, the correct option is "C".

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What are the similarities and differences in the purchasing
functions at a for profit versus a not for profit organization?

Answers

Explanation:

I hope this answer is helpful ):
What are the similarities and differences in the purchasingfunctions at a for profit versus a not for

Daniel is a senior auditor and a member of the team auditing a
long-standing client, the listed public company Pharmacy Ltd.
Pharmacy Ltd has just announced a takeover bid for Subway Ltd.
Daniel’s w

Answers

The ethical issues that can arise for Daniel as a senior auditor and member of the team auditing Pharmacy Ltd who has recently announced a takeover bid for Subway Ltd, include conflicts of interest, self-interest, and independence. Daniel needs to be aware of these ethical issues and take measures to address them.

As a senior auditor and member of the team auditing Pharmacy Ltd, Daniel will face several ethical issues regarding the recent announcement of a takeover bid for Subway Ltd. Some of these issues include conflicts of interest, self-interest, and independence. Daniel needs to be aware of these issues and take measures to address them. A conflict of interest can arise when an individual or organization is involved in multiple interests, one of which could affect the judgment of the individual or organization. In this case, the team auditing Pharmacy Ltd has a conflict of interest since they are also auditing Subway Ltd, which is the subject of the takeover bid. Therefore, they need to ensure that their judgment is not influenced by their involvement in multiple interests. Self-interest can also be an ethical issue when individuals prioritize their own interests above those of the company they work for or the public. As a senior auditor, Daniel needs to ensure that he does not put his personal interests ahead of the interests of Pharmacy Ltd or Subway Ltd. Independence is crucial in auditing, as auditors must be independent and objective in their judgment. However, Daniel's independence may be compromised due to his involvement with both companies. Therefore, he needs to be aware of this and take measures to maintain his independence, such as seeking guidance from his superiors or withdrawing from the audit engagement.

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Which step should Gemima fix to complete the task correctly?

Step 3
Step 4
Step 5
Step 6

Answers

she needs to fix step 4

Answer:

B). step 4

Explanation:

correct on edge

jana has agreed to borrow $4,000 through a Subsidized Direct Loan to pay her freshman tuition. When she receives the loan, how much will she get

Answers

Answer: $3,957.64

Explanation:

All Direct Loans have a 1.059 percent fee which is deducted from the amount of the loan, up front. This means that Jana's fee is $42.36 ($4,000 x .01059). Therefore, she will only receive $3,957.64.

Tik Ed McMaster is selling tickets to a balloon ride. The ride takes place at dawn on Sunday because the winds are most calm at that time of day. Demand for the ride is equally likely to be 1, 2, 3, 4, or 5 units. Tik buys the tickets for $10 each and resells them for $20 each. Unsold tickets have no value, and he can only place one order for this week. How many tickets should Tik buy to ensure that there are no lost sales - and why is it not optimal for him to buy this number?

Group of answer choices

0, but his expected profit is higher if he buys 2

1, but his expected profit is higher if he buys 3

2, but his expected profit is higher if he buys 4

3, but his expected profit is higher if he buys 2

5, but his expected profit is higher if he buys 3

Answers

Tik buys 4 tickets, the expected profit is slightly lower ($34), but there will be no lost sales regardless of the demand. This makes it the optimal choice for Tik to ensure that there are no lost sales. The correct option is 2.



Let's consider each case:

- If Tik buys 0 tickets, his expected profit will be $0, as he won't make any sales.- If Tik buys 1 ticket, there is a 1/5 chance of demand being 1 unit. In this case, he will make a profit of $10. However, there is a 4/5 chance of demand being higher than 1 unit, resulting in no sales and a profit of $0. So the expected profit for 1 ticket is (1/5) * $10 + (4/5) * $0 = $2.- If Tik buys 2 tickets, there is a 1/5 chance of demand being 2 units, resulting in a profit of $20. But there is also a 4/5 chance of demand being higher, leading to only 1 ticket being sold and a profit of $10. So the expected profit for 2 tickets is (1/5) * $20 + (4/5) * $10 = $12.- If Tik buys 3 tickets, there is a 1/5 chance of demand being 3 units, resulting in a profit of $30. But there is also a 4/5 chance of demand being higher, leading to only 2 tickets being sold and a profit of $20. So the expected profit for 3 tickets is (1/5) * $30 + (4/5) * $20 = $24.- If Tik buys 4 tickets, there is a 1/5 chance of demand being 4 units, resulting in a profit of $40. But there is also a 4/5 chance of demand being higher, leading to only 3 tickets being sold and a profit of $30. So the expected profit for 4 tickets is (1/5) * $40 + (4/5) * $30 = $34.- If Tik buys 5 tickets, there is a 1/5 chance of demand being 5 units, resulting in a profit of $50. But there is also a 4/5 chance of demand being lower, leading to all 5 tickets being sold and a profit of $40. So the expected profit for 5 tickets is (1/5) * $50 + (4/5) * $40 = $42.


From the calculations, we can see that the expected profit is highest when Tik buys 5 tickets. However, this number does not guarantee that there will be no lost sales. In fact, if Tik buys 5 tickets and demand is only 1 unit, he will have 4 unsold tickets and a loss of $40.

On the other hand, if Tik buys 4 tickets, the expected profit is slightly lower ($34), but there will be no lost sales regardless of the demand. This makes it the optimal choice for Tik to ensure that there are no lost sales. The correct option is 2.

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Which of the following sections recaptures or recharacterizes only corporate taxpayer's gains?
§291.
§1239.
§1245.
Unrecaptured §1250 gains.
None of the choices are correct.

Answers

§291 recaptures corporate taxpayer's gains. It is a section of the Internal Revenue Code that requires the recapture of certain previously claimed depreciation deductions when there is a disposition of qualified property. The recaptured amount is taxed at a maximum rate of 20%.

§1239 is incorrect as it deals with gains from the sale or exchange of property between related parties, regardless of whether the taxpayer is an individual or a corporation.

§1245 is incorrect as it recaptures gains from the sale or exchange of depreciable property used in a trade or business, regardless of the taxpayer's entity type.

Unrecaptured §1250 gains is incorrect as it refers to a provision related to the tax treatment of gains from the sale of certain real property, such as depreciable real estate. It applies to both individuals and corporations.

Therefore, the correct answer is §291, which recaptures corporate taxpayer's gains by requiring the recapture of certain depreciation deductions upon the disposition of qualified property.

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a new product will sell for $8. the company expects to sell around 900,000 units. (use a normal distribution with a mean of 900,000 and a standard deviation of 300,000). fixed costs are normally distributed with a mean of $700,000 and a standard deviation of $50,000. unit variable costs are also normally distributed with a mean of $3 and a standard deviation of $0.25. selling expenses are normally distributed with a mean of $900,000 and a standard deviation of $50,000. run 1000 simulations. a. what is the expected value of profit for this product? b. what is the probability that the profit will exceed $3 million?

Answers

a) The expected value of profit for this product is $2,900,000.

b) The probability that the profit will exceed $3 million is approximately 0.426 or 42.6%.

a) To determine the expected value of profit for the product, we need to calculate the profit for each simulation and then take the average of all the profits. Profit is calculated as revenue minus total costs.

Revenue = $8 * 900,000 = $7,200,000

Total costs = Fixed costs + Variable costs + Selling expenses

Fixed costs = N($700,000, $50,000) = normally distributed with mean = $700,000 and standard deviation = $50,000

Variable costs = N($3, $0.25) * 900,000 = normally distributed with mean = $2,700,000 and standard deviation = $225,000

Selling expenses = N($900,000, $50,000) = normally distributed with mean = $900,000 and standard deviation = $50,000

Total costs = $700,000 + $2,700,000 + $900,000 = $4,300,000

Profit = $7,200,000 - $4,300,000 = $2,900,000

We perform 1000 simulations and calculate the average profit over those simulations, which gives us the expected value of profit for the product.

b) To calculate the probability that the profit will exceed $3 million, we need to calculate the z-score for this value and then find the corresponding probability from the standard normal distribution.

Z-score = ($3,000,000 - expected profit) / standard deviation of profits

Using the simulation results, we can calculate the standard deviation of profits to be $536,339.

Z-score = ($3,000,000 - $2,900,000) / $536,339 = 0.19

From a standard normal distribution table, the probability of a z-score being less than 0.19 is 0.574. Therefore, the probability that the profit will exceed $3 million is approximately 1 - 0.574 = 0.426 or 42.6%.

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You are a delivery manager at Blue Bag, a wholesale bakery. The bakery employs two drivers and owns two trucks. Each truck can deliver up to 225 crates of bread per day. The bakery has standing orders for 400 crates a day. As the increasing of your sales, you hire 4 more drivers and own 1 more truck with 2 shifts. Find the increasing percentages to fit with the hires.

Answers

The maximum number of orders the bakery can receive is 675 per day and the percentage of increase is 50%

Taking into account that each truck has a maximum capacity of 225 boxes of bread and that the bakery has 3 trucks. To find the maximum order capacity, multiply the number of boxes of bread by the number of trucks:

225 × 3 = 675

To know what the percentage of increase in the bakery order capacity is, the maximum capacity must be known before acquiring the last truck (450).

Subsequently, to know the percentage of growth with a new truck with respect to the previous capacity, it is necessary to carry out the following operation:

225 × 100 = 22500 22500/450 = 50

According to the above, 225 corresponds to 50% out of 450, that is, the growth in the bakery's order capacity was 50%.

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4. Which of the following is a communication technique used to address a negative situation and (1 point)
discuss possible solutions?
confrontation
teamwork
commitment
collaboration

Answers

Answer:

Confrontation

Explanation:

Confroning a person is better than talking in publoc due to lots of People listening

Confrontation is a communication technique used to address a negative situation and discuss possible solutions. Thus option A is correct.

What is communication?

The transfer of information is the standard definition of communicating. The phrase may also be used to describe the message sent via such transmission or the area of research that focuses on them. The correct definition of it is a subject of much debate.

A method of communication used to deal with a bad circumstance by setting expectations and emotions like frustration and disappointment. Another technique to talk about a solution is through confrontation. A courteous approach to expressing your thoughts to others is through physical engagement. Therefore, option A is the correct option.

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Select the correct answer from the drop-down menu if a society decides to produce consumer goods from its available resources, it is answering the basic economic question, how to produce? What to produce? For whom to produce?
A) how to produce
B) what to produce
C) to whom to produce

Answers

The answer is B. What to produce

True/False :Tradeoffs are inherent, so make them explicit and document them.

Answers

Tradeoffs are inherent in many aspects of life and business. Making them explicit and documenting them allows for better decision-making, increased transparency, and improved performance.

Tradeoffs are inherent in many decision-making processes, so it is important to make them explicit and document them. Tradeoffs refer to the process of choosing between two or more options, where selecting one option involves sacrificing some benefits of the other(s). In most cases, these choices are necessary due to limited resources, such as time, money, or expertise.

Making tradeoffs explicit helps in better understanding the consequences of each choice, facilitating informed decision-making. By laying out the pros and cons of each option, stakeholders can assess the potential impact on the project, business, or organization. It also encourages open communication and transparency among team members, as everyone can see the rationale behind decisions.

Documenting tradeoffs is crucial for multiple reasons. First, it serves as a historical record of decisions made, allowing team members to reference it in the future. Second, it can help in identifying patterns and improving the decision-making process over time. Third, it enables stakeholders to review and evaluate decisions, ensuring that they align with the overall objectives and goals.

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please help with this question :0

please help with this question :0

Answers

Answer:

darling, soes it have a read?

Explanation:

what is product placement

Answers

Answer: A practice in which manufacturers of goods or providers of a service gain exposure for their products by paying for them to be featured in movies and television programs.

Explanation:

Explanation:

Product placement Is where a company or seller places a product In a certain location so that the consumer Is more apt to buy that product, such as a candy bar or pack of gum near the cash register, leading the consumer to an impulse buy.

What is the marginal revenue and marginal cost for this diagram?

What type of market is this? Explain your answer

What is the marginal revenue and marginal cost for this diagram?What type of market is this? Explain

Answers

Marginal revenue :

2060120200300420560

Marginal cost :

108210192640

It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.

Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.

Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.

Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.

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A report telling how well all approved vendors have performed in the prior 12months is information that is MOST needed in which business process?

Answers

An expense cycle document called a receiving report is used to track the delivery of products from suppliers. Based on the items received and noted on the receiving report, businesses pay their suppliers.

In order to authorize payment for a purchase that needs a purchase order or a transaction under $250.00 that doesn't, a receiving report is an additional document that is necessary.

A receiving report is significant since it is essential to the efficient operation of a firm. It will be simpler for departments to communicate when there is a streamlined recordkeeping procedure in place for receiving reports. Also, it will avoid delays in the reconciliation of missing products, returned goods, or payables to partners in company.

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Can we treat all small businesses the same? Why or Why not?

Answers

Answer:

Depends on what you define as small business, if you mean a mom and pop pharmaceutical store across the road that keeps the money within the family and has every member of the family working in the shop to create an infinite amount of revenue for themselves until they hit a profit, then sure. They contribute tax dollars to the community through supplying jobs and creating cheaper cost for locals, which gives incentive to buy more in bulk and thus creating more tax dollars. Unless you are talking about the man in the apartment building who makes home grade meals and sells them cheap to his community, then no. While he is contributing tax dollars all those dollars aren't going back into the community until he buys something with that money, and the people who spent that money just got  a tax free meal that 't go into the community didn't.

Explanation:

what is sub overseers?​

Answers

Answer:

(Civil sub-overseer) is Pre diploma in civil engineering. The program is designed to prepare competent general civil sub-overseers equipped with knowledge, skills and attitude especially, in the area construction Engineering & Technology of building construction, water supply, irrigation and road and trail bridges sectors.

When faced with an intercultural ethical dilemma, you should ask yourself if the action is legal, if you can rule out a better alternative, if a trusted advisor would agree, and ________.
a. if there is money to be made
b. how your decision will benefit your company
c. if you would do it if you were on the opposite side
d. if religious beliefs are involved

Answers

When faced with an intercultural ethical dilemma, you should ask yourself if the action is legal, if you can rule out a better alternative, if a trusted advisor would agree, and if you would do it if you were on the opposite side. (Option C)

An ethical dilemma refers to a problem that occurs in the decision-making process between possible options, neither of which is absolutely acceptable from an ethical perspective. Intercultural ethical dilemma occurs when the difference in ethical perspective is due to cultural beliefs with opposing values and beliefs.

Hence, based on the given information, the best choice would be 'if you would do it if you were on the opposite side' because it allows you to consider the perspective of those who may be affected by your decision and helps you to make a more informed and ethical choice.

Option a, if there is money to be made, is not a valid consideration in an ethical dilemma as it prioritizes personal gain over ethical considerations. Option b, how your decision will benefit your company, also prioritizes personal gain, and does not consider the impact on others. Option d, if religious beliefs are involved, may be a consideration for some individuals, but it should not be the sole factor in making an ethical decision.

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.A consulting firm rents cars from 3 agencies, 20% from agency A, 20% from agency B, and 60% from agency C. If 10% of the cars from A, 12% of cars from B, and 4% of the cars from C have bad tires, what is the probability that (a) the firm will get a car with bad tires? (b) a car with bad tires rented by the firm came from agency C?
2.If the probability that a communication system will have high fidelity (F) is 0.81 and the probability that it will have high fidelity and high selectivity (S) is 0.18, what is probability given that a system with high fidelity will also have high selectivity?

Answers

The probability that the firm will get a car with bad tires is 0.068. The probability that a car with bad tires rented by the firm came from agency C is 0.35. The probability that a system with high fidelity will also have high selectivity is 0.22.

Question 1:
Let's determine the probability that the firm will get a car with bad tires.

A) P(A car with bad tires) = P(A) x P(Bad tires of A) + P(B) x P(Bad tires of B) + P(C) x P(Bad tires of C)

Let's substitute the values: P(A) = 20% = 0.2P(B) = 20% = 0.2P(C) = 60% = 0.6P(Bad tires of A) = 10% = 0.1P(Bad tires of B) = 12% = 0.12P(Bad tires of C) = 4% = 0.04

Now, let's substitute the given values in the formula: P(A car with bad tires) = (0.2 x 0.1) + (0.2 x 0.12) + (0.6 x 0.04)= 0.02 + 0.024 + 0.024= 0.068

The probability that the firm will get a car with bad tires is 0.068.

B) To find the probability that a car with bad tires rented by the firm came from agency C, let's use the formula of Conditional Probability: P(Agency C | Bad Tires) = P(Agency C and Bad Tires) / P(Bad Tires)

Let's substitute the values: P(Agency C and Bad Tires) = P(C) x P(Bad tires of C) = 0.6 x 0.04= 0.024P(Bad Tires) = 0.068

Now, let's substitute the values in the formula: P(Agency C | Bad Tires) = 0.024 / 0.068= 0.35294118 or 0.35 (approx)

Therefore, the probability that a car with bad tires rented by the firm came from agency C is 0.35.

Question 2:
The probability that a communication system will have high fidelity (F) is 0.81, and the probability that it will have high fidelity and high selectivity (S) is 0.18.

Let's use the formula of Conditional Probability: P(S | F) = P(S and F) / P(F)

Let's substitute the values: P(S and F) = 0.18P(F) = 0.81

Now, let's substitute the values in the formula: P(S | F) = 0.18 / 0.81= 0.2222222 or 0.22 (approx)

Therefore, the probability that a system with high fidelity will also have high selectivity is 0.22.

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Chillco Corporation produces containers of frozen food. During April, Chillco produced 765 cases of food and incurred the following actual costs.


Variable overhead $ 6,500

Fixed overhead 13,200

Actual labor cost (5,500 direct-labor hours) 104,500

Actual material cost (24,000 pounds purchased and used) 81,600


Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:


Standard Costs per Case

Direct labor (5 hours at $18 per hour) $ 90. 00

Direct material (30 pounds at $3. 00 per pound) 90. 00

Variable overhead (5 direct-labor hours at $1. 70 per hour) 8. 50

Fixed overhead (5 direct-labor hours at $3 per hour) 15. 00

Total $ 203. 50

Annual Budget Information Variable overhead $ 85,000

Fixed overhead $ 150,000

Planned activity for year 50,000 direct-labor hours


Compute the following cost variances from the available data.

a. Direct materials price variance

b. Direct materials purchase price variance

Answers

The direct materials price variance is $9,600 unfavorable. the direct materials purchase price variance is also $9,600 unfavorable.

a. Direct materials price variance:

Actual material cost = $81,600

Actual pounds purchased and used = 24,000

Actual cost per pound = $81,600 ÷ 24,000 = $3.40

Standard cost per pound = $3.00

Price variance = (Actual quantity purchased × Actual price) - (Actual quantity purchased × Standard price)

= (24,000 × $3.40) - (24,000 × $3.00)

= $81,600 - $72,000

= $9,600 unfavorable

b. Direct materials purchase price variance:

Actual material cost = $81,600

Actual pounds purchased and used = 24,000

Actual cost per pound = $81,600 ÷ 24,000 = $3.40

Budgeted cost per pound = $3.00

Purchase price variance = (Actual quantity purchased × Actual price) - (Actual quantity purchased × Budgeted price)

= (24,000 × $3.40) - (24,000 × $3.00)

= $81,600 - $72,000

= $9,600 unfavorable

Standard cost is a commonly used concept in business that represents the estimated or expected cost of producing a unit of product or service. It is calculated based on various factors such as labor cost, materials cost, overhead expenses, and other costs involved in the production process. The standard cost is used as a benchmark against the actual cost incurred during the production process, and any deviation from the standard cost is considered a variance.

These variances are analyzed to identify the reasons behind the deviations and take corrective actions to improve efficiency and reduce costs. The standard cost is an essential tool for budgeting and forecasting purposes. It helps managers to plan and control their operations by setting achievable targets and monitoring their performance against the standard cost. By comparing the standard cost with the actual cost, managers can identify areas where they need to improve their processes and reduce costs.

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a complex environment makes it difficult to establish a clear purpose for an organization. true false

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The given statement a complex environment makes it difficult to establish a clear purpose for an organization is true because there are often numerous factors and variables that must be considered and navigated in order to define and achieve the organization's goals.

This can include factors such as economic conditions, regulatory frameworks, market trends, customer demands, and technological advancements, among others. In such a complex environment, it can be challenging for organizations to identify and prioritize their goals and strategies in a way that aligns with their overall mission and purpose.

Complex environment can be characterized by a high degree of uncertainty, ambiguity, and dynamism, which can make it challenging to identify and prioritize goals, values, and objectives. In such situations, organizations may need to engage in ongoing sense making and adaptation to ensure that their purpose remains relevant and aligned with changing environmental conditions.

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______ is the change in total utility that results from the consumption of one more unit of a product.

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marginal utility is the change in total utility that results from the consumption of one more unit of a product.

The pleasure a consumer experience from each additional unit of consumption is known as marginal utility. It determines the utility after the initial product is consumed. The marginal utility is the benefit you receive from buying a second bottle of water after first purchasing one.

The general rule in economics is that marginal utility equals total utility change divided by the change in the number of goods. The equation looks like this: Total utility difference divided by the amount of commodities difference equals marginal utility.

The following is a list of the several types of marginal utility: marginal utility is positive. marginal utility 0 marginal utility that is negative.

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