Which one is not an example of input to a mathematical model?  a. Uncontrollable or environmental variable b. Answer not given c. Controllable or decision variable d. Projected result

Q: Using a wrong formula for CAPM is a __  (select one) a. Erronous model risk b. Market data…

A: Introduction : In simple word, the capital asset pricing model (CAPM) is the valuation model used to…

Q: Which of the following is false of the historical VaR?  a. It is based on normal distribution of…

A: Ans. Historical VaR do makes use of Monte Carlo Simulation.

Q: Which statement is incorrect concerning the constraint on relevant and reliable information? *…

A: Solution: Following statements are correct concerning the constraint on relevant and reliable…

Q: Which of the following is not one of the main issues regarding data collection which can…

A: Data collection is one of the modt fundamental and important steps in any statistical analysis. If…

Q: It says that step a is wrong. That those are not the right ROI's. Is there another way to solve that…

A: Introduction:- Return on investment indicates how well an investment performed in comparison to the…

Q: Difference Between Traceability and Controllability?

A: Following is the answer to the given question

Q: How do simulation analysis and scenario analysis differ in the way theytreat very bad and very good…

A: The process to evaluate different probable events and their outcomes that is end result of a project…

Q: Which of the following statements is FALSE about "backward thought process'? Statement I. It…

A: a) neither of two statements is false

Q: Explain why NPV is the best criterion and how it overcomes problems inherent in the other methods.

A: The "value derived from the use of money over time as a consequence of investment and reinvestment"…

Q: Why the limitation of portfilio analysis is itsuggests the use of standard strategies that can miss…

A: A portfolio is a collection of various investments. Portfolios are a vital part of a corporation…

Q: Which of the following is not a cause of mistakes in model building? Choices:   A.Sub-optimal…

A: There are numerous mistakes in planning stage of model building. Unclear vision, lack of resources,…

Q: What detail would a decision maker require to analyse a dilemma with the expected value? What…

A: Settling on choices is surely the main undertaking of an administrator and it is regularly an…

Q: An advantage of the high-low method is that it a. is subjective. b. is objective. c. is the most…

A: The company also will prepare the contribution margin income statement to arrive at the contribution…

Q: Which answer below is the result of this error?

A: In the given case, the journal entry is recorded incorrectly. Due to which the service revenue will…

Q: Which one is not an advantage of the sensitivity analysis? A. To make contingency plans B. To adjust…

A: Some important factors are changeable and unpredictable in future like interest rates, cashflows,…

Q: A critical assumption of the exploratory factor analysis (EFA) is that it is only appropriate for…

A: Definition: Exploratory Factor Analysis (EFA): It is a statistical approach to determine the…

Q: What are the steps in computing the cost of a prediction error when using the EOQ decision model?

A: Economic Order Quantity (EOQ): Economic order quantity is the quantity of order that is purchased…

Q: An analysis of what happens to the estimate of net present value when only one input variable is…

A: Net Present Value: It is the present worth of future cash flows and the initial cost of the project.…

Q: The internal rate of return (IRR), despite its shortcomings, can be a useful analysis tool for…

A: IRR is the required rate of return for the project to have zero Net Present value.

Q: Why do conflicts sometimes arise between the netpresent value (NPV) and internal rate of return(IRR)…

A: The basic assumption between NPV and IRR method is the cash flows are reinvested. In the NPV method,…

Q: Which of the following is NOT an advantage ofcommercial software?a. Costb. Independencec.…

A: The software market has infiltrated every aspect of a business or service as technology has…

Q: which of the following is not a qualitative characteristic associated with Relevance? a.…

A: Financial statements should be true and fair, for presenting true and fair financial information;…

Q: Internal rate of return approach does not address the issues of scale! Discuss?

A: Capital budgeting is a method used for finding the profitability of investment proposals. These…

Q: How are Sensitivty Analysis and Scenario Analysis different in details?

A: Sensitivity analysis is the evaluation of the impact on the project when there may be a few…

Q: the strengths o

A: Strengths of  scientific approach  Researchers employing survey methods to collect data enjoy a…

Q: Sensitivity analysis is the analysis of the effect of parameter changes on the optimal solution.…

A: Sensitivity analysis is done to understand changes in a target variable when changes are made in…

Q: Factors in a decision problem that cannot be expressed in numerical terms are: a. qualitative in…

A: Correct Answer is Option A i.e. qualitative in nature.

Q: What kinds of controls are the most difficult to show in a balanced scorecard?

A: The balanced scorecard is a too for measuring the performance.

Q: This is is used to check the effect on the recommendations of a model if the estimates turn out to…

A: solution: concept In a what if analysis we try to answer the question of what if What if the value…

Q: NOT true about simulation models?

A: A simulation analysis is a technique of developing a mathematical representation of an original…

Q: Explain the relationship between WACC and EVA! demonstrate by providing a complete analysis and…

A: Formula: EVA = Net Operating profit margin(NOPAT) -(Capital employed* WACC)

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: Can somebody check if this is right it's a hw problem on cengage?

A: Hi, All the ratios you have calculated is right. Thanks

Q: Answer the following questions : A. Which alternative is the best? B. Calculate the point of…

A: A firm finances its business operations through different sources of capital such as ordinary…

Q: When we work with the breakeven point, how important is it to understand what a decision variable…

A: The question is related to Marginal Costing. The break-even point is that level of sales at which…

Q: What are some pros and cons of computing an expected return using a user-specified model versus…

A: Expected Return: As opposed to observed returns that are measured at the end of a given period, the…

Q: The process of choosing among competing alternatives is called a. planning.b. decision making.c.…

A: Planning represents the process of identifying goals and plan to achieve those goals. Controlling…

Q: Factors in a decision problem that cannot be expressed in numerical terms are:

A: Decision problems are problems related with selection of one alternative from various alternatives.…

Q: The inputs to a model may have different roles. Among the choices, which should be excluded?…

A: Inputs are main variables for decision making in any model. Inputs influence the output amd the…

Q: Two potential pitfalls encountered in the design of performance indicators and measurement systems

A: Transfer price is the price quoted between the departments or companies that are related to each…

Q: How is breakeven analysis different from CVP analysis?

A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…

Q: How will management know if one of the hypotheses underlying the balanced scorecard is false?

A: The best way to sort out if the speculation is valid or bogus is by trying it. All the speculation…

Q: Which of the following is NOT an advantage of using sensitivity analysis?

A: Which of the following is NOT an advantage of using sensitivity analysis? A  It identifies the…