A firm is most likely to engage in horizontal FDI, as opposed to exporting, when trade costs are and the foreign market is -- O high; small O low; small O high; large O low; large

4. Trying to determine the number of students to accept is a tricky task for universities. The Admissions staff at a small private college wants to use data from the past few years to predict the number of students enrolling in the university from those who are accepted by the university. R INPUT: accepted |t]) (Intercept) accepted 88.88272 182.36584 0.487 0.6515 0.20801 0.07002 2.971 0.0411 * Signif. codes: ***' 0.001 **' 0.01 '*' 0.05 '.' 0.1 ' 1 Residual standard error: 26.35 on 4 degrees of freedom 0.6881, Adjusted R-squared: 0.6101 Multiple R-squared: F-statistic: 8.824 on 1 and 4 DF, p-value: 0.04112 (a) Write an equation for the regression line. (b) What is the slope of the least-squares regression line? Interpret this in the context of the application. (c) Interpret the intercept of the line in context. Does the interpretation make sense?

The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of 20 homeowners in New England and then calculated these total housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago?   Homeowner Five Years Ago   Now   Homeowner   Five Years Ago   Now 1   17 %     10 %     11       35 %     32 % 2   20       39       12       16       32   3   29       37       13       23       21   4   43       27       14       33       12   5   36       12       15       44       40   6   43       41       16       44       42   7   45       24       17       28       22   8   19       26       18       29       19   9   49       28       19       39       35   10   49…

Several states have argued that the 65-mph speed limit has no justification and have refused to enforce it. The federal Department of Transportation (DOT) believes that the 65-mph limit saves lives. To illustrate its contention, the department regressed the number of traffic fatalities (Y) last year in a state on the state’s population (X1), the number of days of snow cover (X2), and the average speed of all cars (X3). The results are shown below. Table 10: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .821 a .780 .613 3.258 a. Predictors: (Constant), population, days of snow, average speed   Table 11: Coefficients Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 1.4 2.957   .473 .584 Population .00029 .00003 .0034 9.667 .000 Days of Snow 2.4 .62 .759 3.871 .000 Average Speed 10.3 1.1…

University researchers published a working paper. One of the objectives of the study was to determine whether ride-share drivers actually make a profit.

To the Internal Revenue Service (IRS), the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with larg given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income Itemized Deductions ($1,000s) 22 ($1,000) 9.6 27 9.6 32 10.1 48 11.1 65 13.5 85 120 15.7 25.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. 30 25 20 15 10 5 30 25 20 15 10 5+ 30 25- 20- 15- 10- .. 5- 0 20 40 60 80 100 120 140 Adjusted Gross Income ($1,000s) 0 20 40 60 80 100 120 140 0 Adjusted Gross Income ($1,000s) 20 40 60 80 100 120 140 Adjusted Gross Income ($1,000s) 30 25 20 15 10 5- 0 20 40 60 80 100 Adjusted Gross Income ($1,000s) 120 140 G (b) Use the least squares method to…

Atlantic hurricanes form off the western coast of Africa. As warm moist air rises, it begins to rotate around a low- pressure system. This rotation is sustained by warm ocean temperatures and a central low pressure. Once a sustained wind speed of 74 miles per hour is reached, the storm is considered a hurricane. As man-made climate change continues to increase the temperature of the Earth's oceans, it is expected that the strength of hurricanes will Typically, a lower central pressure within a hurricane's eye is associated with a higher wind speed. Here, statistical software (R/RStudio) will be used to explore this relationship by applying linear regression methods. Using a database of landfalling hurricanes in the United States, a linear regression will be used to correlate the central pressure of each hurricane to its maximum sustained wind speed. increase. Regression Plot y=942.196-0.884*x R^2=0.768 ----- ----------- -. •... •. 980 1000 940 960 900 920 Independent Variable (x)…

Identify several types of manufacturing companies for which process costing would be an appropriate product-costing system. What characteristics do the products of these companies have that would make process costing a good choice? How is process costing similar and different in a second or later processing department?

Opinions are split about a coffee​ company's pumpkin-flavored coffee​ (PFC). Yet every year over the last five years the consumption of​ pumpkin-flavored goods has increased. If we look at the​ numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a​ magazine, the amount spent by PFC buyers at the coffee company is about​ 17% higher than​ non-PFC buyers. The accompanying table shows a random sample of eight​ consumers, the amount they spend per​ week, and the number of PFCs purchased per week.     PFC Spending     2 13.88     7 39.11     4 19.79     1 9.84     3 15.43     1 21.52     5 37.39     3 13.85   Calculate the slope and​ y-intercept for the regression formula.   The slope is b1=​(Round to three decimal places as​ needed.)

.    In 2010, of a total of 67,000 rooms on the Las Vegas Strip, Caesars Entertainment managed 22,880, while MGM Resorts managed over 12,000. However, owing to the Great Recession and new hotel openings, between 2008 and 2010, MGM's hotel occupancy decreased from 92% to 89%, while its average daily room rate fell from $148 to $108. Meanwhile, CityCenter, managed by MGM Resorts, and the Cosmopolitan opened with 4,000 and 3,000 rooms respectively, and the 1,720-room Sahara closed.  (Sources: Caesars Entertainment Corp., Annual Report 2010; MGM Resorts, Annual Report 2010; "Sahara's closure on May 16 will mark `the end of an era'," Las Vegas Sun, March 11, 2011.) (a) Using a suitable figure, explain how the opening of CityCenter and the Cosmopolitan affects the residual demand for an existing hotel and how it should adjust prices. (b) If MGM Resorts had not reduced its room rates, what would have been the effect on occupancy? (c) Use the Cournot model to explain…