The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and is used by an average of 433 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $0.99. The marketing department\'s studies indicate this price increase would reduce usage to 169 riders per day. Calculate the price elasticity of demand for bus tickets to determine if the bus company should increase price or decrease price to increase revenues.Price elasticity of demand is? 7.45 I get but on the online hw, it says its wrong? I tried 7.5 too? I used the midpoint formula (q2-q1)/((q2+q1)/2) / (p2-p1)/((p2+p1)/2)

Answers

Answer 1
Answer:

Answer:

Midpoint formula = - 7.43

Other formula = - 4.88

Elastic PED - Decrease price to increase total revenue

Explanation:

Price elasticity of demand is the responsiveness of quantity demanded to a change in price. The midpoint formula calculation is as follows:

(Q2 - Q1) / [(Q2 + Q1/2]

(P2 - P1) / [(P2 + P1/2]

In this scenario:

Q1 = 433 (old quantity)

Q2 = 169 (new quantity)

P1 = 0.88 (old price)

P2 = 0.99 (new price)

When this is substituted into the formula, it is as follows (I shall do it one step at a time to make it easier):

(169 - 433) / [(169 + 433/2]

(0.99 - 0.88) / [(0.99 + 0.88/2]

(169 - 433) / 301

(0.99 - 0.88) / 0.935

- 264 / 301

0.11 / 0.935

- 0.877

0.118

PED =- 7.43(PED is always a negative figure because price and quantity demanded have an inverse relationship. i.e. when one falls, the other rises)

PED is elastic if it is more than 1 and elastic if it is less than 1.

In this case, 5.8 is more than 1, hence PED is elastic.

In such a case, a change in price will always lead to a higher change in quantity demanded. Therefore, it is important to decrease the price to increase total revenue.

However, a different answer can be obtained using a different PED calculation

% change in quantity demanded

% change in price

(Q2 - Q1) / Q1

(P2 - P1) / P1

(433 - 169) / 433

(0.99 - 0.88) / 0.88

0.61

0.125

PED = - 4.88


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Assume that you are interested in the relationship between Graduate Record Examinations (GRE) scores (the total of all subtests) and graduate school grade point averages (GPAs) at the end of their graduate programs. Conveniently, you have access to the GRE scores and GPAs of a large number of graduate students who have graduated from the electrical engineering master's program in an Ivy League university between 2000 and 2013. The Pearson correlation coefficient did not reach significance. What can you conclude from the data analysis? Can the result be generalized to all graduate students in electrical engineering master's programs across the United States? Why or why not?

Answers

Answer:

There was no significant relationship

Explanation:

From the result of the data analysis, it can be concluded that Graduate Record Examination (GRE) does not have any relationship with the performance of all graduate students in Electrical Engineering Master's Programs and an increase in GRE score can not lead to an increase in GPA of the students.

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Answers

Accounts receivable turnover is computed by dividing sales revenue by average accounts receivable over a certain period. It gauges a company's effectiveness in extending credit and collecting debts. Higher values of this figure indicate a more proficient collections department and credit policy.

The accounts receivable turnover is a measure used in financial accounting to quantify a firm's effectiveness in extending credit and collecting debts. The formula to calculate this key figure involves the sales revenue divided by the average accounts receivable during a certain period. More specifically, it is computed as Net Credit Sales / Average Accounts Receivable. It's a key indicator of a company's short-term liquidity, with higher values indicating that the business has a more proficient collections department and credit policies.

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Final answer:

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Explanation:

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An accrued expense best describes an amount not paid and currently matched with earnings. In business accounting, accrued expenses are those expenses that have been incurred, but not yet paid. These are calculated and recognized in the books, even if the payment hasn't been made. That is why they are also matched with earnings. An example might be wages for employees that have been earned but not yet paid out. Therefore, the correct answer is A. Not paid and currently matched with earnings.

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According to Gardner, intelligence can be measure by a person havinga. the ability to create or find solutions to problems by gathering new knowledge
b. the ability to create a valued product or service
C. Skills that allow them to solve problems in life
d. all of the above

Answers

Answer: D. All of the above.

Explanation:

Answer:

its d

Explanation:

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The Nature Conservancy is one tool that consumers can use to put their money where their mouth is, but it's not the only one. Internet technology is helping large groups of consumers raise money for causes they support. In this case, Internet technology makes it _____________ that the economic pie will be maximized.

Answers

Answer:

The Nature Conservancy is one tool that consumers can use to put their money where their mouth is, but it's not the only one. Internet technology is helping large groups of consumers raise money for causes they support. In this case, Internet technology makes it ____possible_________ that the economic pie will be maximized.

Explanation:

The Nature Conservancy is the management of land and water resources to ensure their conservation.  With internet technology, consumer groups can actually raise money to ensure the objectives of the Nature Conservancy are achieved.  In this case, Internet Technology is an enabler of Nature Conservation.  IT has also enabled many other causes, including Gun Control and Rights Activities.

Global strategic planning is a primary function of a company's managers, and the process of strategic planning provides a formal structure for undertaking this process. Companies are confronting a set of environmental forces that are increasingly complex, global, and subject to rapid change. In response, many international firms have found it necessary to institute formal global strategic planning to provide a means for top management to identify opportunities and threats from all over the world, formulate strategies to handle them, and stipulate how to finance and manage the implementation of these strategies? Drag the following stat ogic pianning steps into the ordor in which they typicaliy occur, from first to last.1. Quanbry goals 2. Formulatc strategic3. External analysis4. Set ojectives 5. Intemal Analysis 6. Tactical planning 7. Define busines

Answers

1. External analysis

2. Internal analysis

3. Define business

4. Set objectives

5. Quantify goals

6. Formulate strategies

7. Tactical planning

The following information should be considered:

Global Strategic Planning happens in the following 7 stages;

  • External Analysis : Here the  business's external Environment should be scanned.
  • Internal Analysis: In this, it shows the strengths, weakness, it's customers and value chain
  • Define Business: Reason for existence, objective, aims, etc
  • Set Objectives: Here the company should set objectives for what they want the company to do in the global Environment.
  • QuantifyGoals: Here the company attempts to quantify
  • Formulate Strategie: strategies for implement it's goals should then be formulated.
  • TacticalPlanning: The plans that will ensure the success of the strategic goals are then made.

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Answer:

1. External analysis

2. Internal analysis

3. Define business

4. Set objectives

5. Quantify goals

6. Formulate strategies

7. Tactical planning

Explanation:

Global Strategic Planning happens in the following 7 stages;

1. External Analysis

Scan the business's external Environment and identify the opportunities presented or the threats posed by outside forces to the company.

2. Internal Analysis

Then it is time to look into the company and find out it's strengths, weakness, it's customers and value chain,  and what sets it apart from others. In other words, what is the Differentiation factor that it has over other companies.

3. Define Business

What is the company's reason for being in existence. What are the objectives and aims of the business and who is it targeting. Why is it targeting them. This is where those Important questions are asked so that one might know why the business exists.

4. Set Objectives.

Here the company should set objectives for what they want the company to do in the global Environment. How the company should be positioned and what the strategic goals are.

5. Quantify Goals

Here the company attempts to quantify or properly express the goals that they hope to achieve in the globe so make it less complicated.

6. Formulate Strategies

Based on what the company has researched and analyzed about itself and the external Environment, strategies for implement it's goals should then be formulated.

7. Tactical Planning

After the Strategic goals have been made, the Tactical Planning is next. This is when the plans that will ensure the success of the strategic goals are then made. These are more short term in nature unlike the strategies that are long term.

Consider a two-step mortgage for $150,000, 30 years, monthly payments, an initial interest rate of 5%, a cap of 5%, and a single rate adjustment at the end of year 7. Assume that the index rate at the end of year 7 is 5% and the margin is 2%. If the borrower pays an extra $100 with each payment starting in month 85, by how many months will he shorten the term of the loan

Answers

Answer:

Consider the following calculations

Explanation:

This 2-step mortgage problem requires a 2-step solution.

To solve for the PMT for the last 23 years of the loan, we first need to know what the principal is at the end of the 7th year.

Thus, step I uses the initial info to solve for the PMT for each month of the first 7 years. N=360, I/Y=5(%)/12 = 0.416667(%), PV=150,000, => PMT = 805.

The discount rate will change to 5% index rate plus 2% margin = 7% at the beginning of the 8th year.

In Step II we first determine the remaining balance at the end of year 7. This requires using the amortization worksheet.

On the TI BA II Plus, AMORT is the secondary function of PV.

Set P1, the periods at which the calculations begin, equal to 1. We cursor down to P2, which is the last period of the calculation, and set it equal to 84. Cursoring down once again, we see that BAL at month 84 = 131,917.52.  

Going back to the TVM row, we set PV remaining at the end of 23 years = 131,917.52. I/Y is calcluated as 5(%) index rate plus 2(%) margin =7%; dividing 7(%) by 12 = 0.583333(%).  N=360-84 = 276 months left.

Finally, we solve for PMT = 962.89.

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