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NEW QUESTION 136
Which of the following options would increase the willingness to pay for new cars in a country?
- A. A new highway is built between two major cities.
- B. The number of commuters that use public transit to get to work increases.
- C. The government increases the tax on new cars.
- D. The overall price of cars decreases by 15 percent.
Answer: A
NEW QUESTION 137 
The data below represent the top 25 U.S. newspapers by average daily circulation (in thousands) in 2013. Based on the output, what is the standard deviation of this sample?
- A. 10.46
- B. 547.42
- C. 109.48
- D. 299,663.81
Answer: B
NEW QUESTION 138
An organization focused on decreasing HIV in developing countries wishes to investigate the relationship between the prevalence of HIV and various education and economic factors. The organization collects data from 2011 for 98 different countries on the prevalence of HIV, as well as average years of schooling, gross domestic product (GDP) per capita, and health expenditures per capita, which they believe all have an impact on HIV prevalence. Which of the following options correctly runs the regression specified above?
A)
B)
C)
D)
- A. Option C
- B. Option D
- C. Option A
- D. Option B
Answer: C
NEW QUESTION 139
When forecasting monthly cash flows, which of the following businesses would be MOST impacted by seasonality?
- A. Hardware store
- B. Toy store
- C. Eyeglasses store
- D. Law firm
Answer: B
NEW QUESTION 140
An executive at an insurance company has developed a new method for determining monthly rates for drivers insured by the company. Using a regression analysis of different factors, the executive has come to the conclusion that the two most important factors are the value of the carand the number of miles the driver lives from the city. The partial regression output table provided by the data is as follows:
Given this information, how much could a driver expect to pay per month for a car worth $45,000 located three miles from the city center?
- A. $836.50
- B. $313.50
- C. $250.00
- D. $563.50
Answer: D
NEW QUESTION 141
At the end of the accounting period, nominal accounts on the income statement close out to which real account on the balance sheet?
- A. Retained earnings
- B. Dividends payable
- C. Common stock
- D. Cash
Answer: A
NEW QUESTION 142
Which of the following options is an example of an implicit transaction?
- A. An invoice for services provided by the pension fund administrator
- B. A depreciation expense for an asset placed in service eight months ago
- C. An invoice for an item of plant equipment that was just purchased
- D. A sales order from a customer for a product to be shipped in two weeks
Answer: B
NEW QUESTION 143
A landlocked student believes that people would prefer to live near the ocean if they could afford the additional expense. To test this, the student wants to see whether states bordering an ocean are more likely to have a larger percent of wealthy families than states without an ocean coast. The student collects data from the 50 U.S. states on the percent of families making over $200,000 a year along with whether the state has an ocean coast (where 1 means the state has an ocean coast).
Based on the regression results given below, what can be said at the 95% confidence level?
- A. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 6.89% of states with an ocean coast. The result is not statistically significant.
- B. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 2.77% of states with an ocean coast. The result is not statistically significant.
- C. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 6.89% of states with an ocean coast. The result is statistically significant.
- D. On average, the wealthy make up 4.12% of the population of states without an ocean coast and 2.77% of states with an ocean coast. The result is statistically significant.
Answer: C
NEW QUESTION 144
A manager at an internet retailer wants to determine whether a recent change in the company's supply chain strategy has affected the amount of time it takes for an order to reach a customer. The historical average amount of time from placing the order to final delivery is 5.2 days. A random sample of 60 orders taken after the implementation of the new strategy indicates an average delivery time of 4.5 days with a standard deviation of 1.4 days. The manager wishes to perform a hypothesis test at a 95% confidence level. Which option represents the correct calculation for the range of likely sample means? Please note that the function for confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).
- A. =5.2 +- CONFIDENCE.NORM(0.025,1.4,60)
- B. =4.5 +- CONFIDENCE.NORM(0.025,1.4,60)
- C. =5.2 +- CONFIDENCE.NORM(0.05,1.4,60)
- D. =4.5 +- CONFIDENCE.NORM(0.05,1.4,60)
Answer: C
NEW QUESTION 145
A pharmaceutical company is developing a drug that aims to reduce the recovery time (in days) for a particular illness. To test the effect, the company gives 200 randomly selected patients a placebo and 200 randomly selected patients the new drug. The findings from the study are provided below.
Based on this output and a confidence level of 95%, which of the following options would be considered correct?
- A. The researchers would not reject the null hypothesis. Furthermore, they would continue production of the new drug, because there is evidence that it significantly lowers recovery time.
- B. The researchers would not reject the null hypothesis. Furthermore, they would suspend production of the new drug, because there is no evidence that it significantly lowers recovery time.
- C. The researchers would reject the null hypothesis. Furthermore, they would suspend production of the new drug, because there is no evidence that it significantly lowers recovery time.
- D. The researchers would reject the null hypothesis. Furthermore, they would continue production of the new drug, because there is evidence that it significantly lowers recovery time.
Answer: B
NEW QUESTION 146
The government decides to set a price ceiling on corn. The price ceiling is set 10% above the equilibrium price. What would be the result of this government action?
- A. There would be a surplus of corn.
- B. The price ceiling would have no effect on the market.
- C. There would be a shortage of corn.
- D. Consumer surplus would increase.
Answer: B
NEW QUESTION 147
On the way to purchase a shirt, a consumer realizes that the shirt is on sale for 20 percent off its original price. What is an outcome of this scenario?
- A. The supplier will price the shirt below its willingness to sell.
- B. The customer will capture more value from the purchase.
- C. The customer's willingness to pay for the shirt will fall.
- D. The customer will buy more shirts.
Answer: B
NEW QUESTION 148
---
A manager at a large gold mining company is trying to determine how a series of recent events will affect the future of his industry.
The following events occur simultaneously:
Flooding damages several gold mines in a region.
The price of platinum, a substitute for gold, increases.
A new government policy mandates an increased wage rate for mine workers.
What should the manager expect regarding the new equilibrium price and quantity for gold?
- A. The equilibrium price increases and equilibrium quantity decreases.
- B. The equilibrium price increases and equilibrium quantity increases.
- C. The equilibrium price increases and the effect on quantity is unknown.
- D. The effect on price is unknown, and the equilibrium quantity increases.
Answer: C
NEW QUESTION 149
A financial planning software company has earned large profits for the past four years, attracting new entrants to the market. What effect does the new competition have on the original company's market?
- A. The company will increase the price of its software.
- B. The company will be willing to supply less at any price.
- C. Customers will become more sensitive to price changes.
- D. Demand for financial planning software will become less elastic.
Answer: C
NEW QUESTION 150
A technology and design company has created a new type of keyboard with different letter placement to make typing easier and more efficient. This new design is also cheaper to manufacture, and the company is able to price the keyboard lower than its competitors. However, sales have been extremely low. What is the MOST likely explanation?
- A. Consumers do not understand the company's differentiation strategy.
- B. Consumers have strong loyalty to existing keyboard manufacturers.
- C. Consumers' demand for keyboards is relatively inelastic.
- D. Consumers find it difficult to switch keyboards once they have learned to type.
Answer: D
NEW QUESTION 151
Based on the histogram below, order the mean, median, and mode of the data from smallest to largest.
- A. Median, Mode, Mean
- B. Mode, Mean, Median
- C. Mean, Mode, Median
- D. Mode, Median, Mean
Answer: D
NEW QUESTION 152
Managers of a milk processing company have hired an ad agency that proposed an advertising campaign to encourage the consumption of milk. Some managers are concerned that the advertisements do not promote the company itself. Under what circumstances would it be beneficial for the firm to adopt the campaign?
- A. The firm faces many strong competitors.
- B. There is significant product differentiation in the milk industry.
- C. The firm is currently losing money.
- D. The firm has a large market share.
Answer: D
NEW QUESTION 153
A government is considering issuing a fixed number of permits allowing firms to pollute. When would this system fail to reduce pollution?
- A. If the government issued too many pollution permits
- B. During an economic expansion
- C. When the price for a unit of pollution is too high
- D. When the system is applied to all industries
Answer: A
NEW QUESTION 154
On the balance sheet, which of the following options would be included in the Paid-In Capital account?
- A. Reserves and accounting provisions
- B. Cash contributed by owners of the business
- C. Equity investments in other companies
- D. A cumulative amount of previous profits
Answer: B
NEW QUESTION 155
A heavily populated town with many gas stations has an average price of $3.25 for a gallon of gasoline. However, one gas station charges $3.60 for a gallon of gasoline and remains very competitive in the market. Which of the following situations could NOT explain this gas station's success?
- A. The gas station is in a convenient location for its customers.
- B. The gas station entered the market earlier than any of its competitors.
- C. The gas station offers a free car wash if customers purchase 10 or more gallons of gas.
- D. The gas station offers a loyalty program through which customers can earn points toward future purchases.
Answer: B
NEW QUESTION 156
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Certification Path of HBX CORe Exam
Created by Harvard Business School staff to bring the dynamism of the HBS class on the web, CORe drenches you in a progression of multimedia contextual evaluations. You will venture right into the part of a business chief and also learn ideas with regards to genuine organization problems successfully moving you to assume and respond swiftly. while giving your strategies to specific students from all throughout the earth. You will certainly leave CORe with one more viewpoint on the world as well as exactly how companies work.
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