BUSI 620 Week 4 Test 1

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The level of sales in May, June, July, and August were 84, 92, 83, and 89, respectively. What is the four­period moving average forecast of sales in September?

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

Which of the following is a leading economic indicator?

Economies of scope refers to the decrease in average total cost that can occur when a firm

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

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)

One difference between foreign and domestic demand for a commodity exported by the U.S. is that

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?

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,

Which of the following would be referred to as “outsourcing”?

Which of the following is a question that is uniquely relevant to the subject of business ethics?

Of the following types of costs, which is most likely a fixed cost for a shoe manufacturer?

Mr. D’s Barbeque of Pickwick, TN produces 10,000 dry­rubbed 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

Which of the following is not a qualitative forecasting technique?

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

Which of the following would most likely make the demand for an item more elastic?

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)

Regression analysis was used to estimate the following seasonal forecasting equation: St = 124 + 18 D1 ­ 46 D2 ­ 28 D3 + 2.5 T

D1 is a dummy variable that is equal to one in the first quarter and zero otherwise; D2 is a dummy variable that is equal to one in the second quarter and zero otherwise; and D3 is a

dummy variable that is equal to one in the third quarter and zero otherwise. Forecast the level of sales in the second quarter of time period ten (T=10).

A computer manufacturer can produce 5 computers for 5,000 and 10 computers for 7,500. Based on this information, what is the marginal cost per computer of the 6th through 10th computer?

The Country Music Hall of Fame is considering lowering admission prices to increase gross revenue. This plan will work if the price elasticity of demand for tickets is

The theory of the firm postulates that the primary objective of managers is to maximize

If three of the eleven leading indicators move up, and the remaining eight are constant, the diffusion index is

Which of the following is a business function that is a part of logistics?

Which of the following is not viewed by firms as an advantage of electronic commerce over traditional commerce?

A multiple regression analysis based on a data set that consists of 30 observations yielded the following estimated demand equation: Q = 120 ­ 1.1 P + 0.04 I + 0.90 A where P is price, I is income, and A is advertising. If price is equal to 1,000, income is equal 20,000, and advertising expenditures are equal to 500, then the predicted quantity demanded (Q) is

What is the present value of 1.21 received at the end of two years if the interest rate is 10% and compounding is annual?

The price elasticity of demand for a firm’s product is equal to ­1.8. The firm currently sells 4,000 units per day at a price of 2. If the firm increases its product price by 10%, then it can expect to sell approximately

A leading indicator is a measure that usually

A security system company’s total production costs depend on the number of systems produced according to the following equation,

Total costs = 10,000,000 + 2,000 Q where Q is the quantity produced. What is the average total cost of production when 20,000 uits are produced?

Buyers consider gasoline and SUV to be complements. If gasoline price increases, what would you expect to occur in the SUV market?

Which of the following is an explicit cost to a firm?

A country that has an abundance of cheap labor will tend to

If Sam’s, a local watering hole, increased the price of a pint of Guinness by 20%, it estimates the number of MBA students purchasing Guinness would decrease by 4%. Based on this data

Use the information about marginal cost (MC) and marginal revenue (MR) that is presented in the table below to determine the profit maximizing level of output.

A baseketball company is considerign purchasing a new machine that doubles capacity from producing 100 balls to 200 balls per day. The machine will occupy 1,000 square feet of unused space on the facotry floor. Which costs are irrelevant in this decision to purchase a machine?

Regression analysis was used to estimate the following linear trend equation:

St = 10.5 + 0.25 t

Use this equation to forecast the value of the dependent variable (St) in time period of 10

In a free­enterprise system, profit is socially desirable because it

If you are trying to determine the value of a firm, which of the following factors would be relevant?

A firm that has total fixed costs of 40,000 sells its output for 250 per unit and has an average variable cost of 150. If the firm’s cost and revenue curves are linear, how much output must the firm produce to break even?

A firm currently produces 2,500 units of output per week. After an additional worker is hired, output rises to 2,620 units per week. If the weekly wage paid to a worker is 480, what is the firm’s short­run marginal cost?