If Ty selects a smartphone solely based on its highest megapixel rating, which he deems the most critical feature, he is employing a lexicographic heuristic in his buying decision. The field of heuristics studies how individuals make choices when it is impossible to optimize. It delves into two inquiries: the first is descriptive, while the second is normative.
Answer:
E. efficiency wages
Explanation:
This situation does not represent discrimination, as Rob has a solid history with the company (15 years). Even though their productivity levels might seem comparable, Rob’s extensive experience warrants the higher compensation.
This exemplifies the efficiency wage hypothesis, which posits that higher salaries can enhance employee productivity. Consequently, this creates an incentive for Rob to remain with the company.
Answer:
6.43%
Explanation:
The insurance company will calculate the internal rate of return utilizing the method detailed below:
Cash flows Year involved Present [email protected]% Present [email protected]%
($100) 1-20 ($851) ($1,487.75)
$3,310 20 $492 $1,832.67
($359) $344.92
IRR=A%+ (a/a-b)*(B%-A%)
A%=10% a= ($359) B%=3% b=$344.92
IRR=10%+(-$359/-$359-$344.92)*(3%-10%)
=6.43%
Answer:
Mike's acknowledged gain from the transfer of the house to him is:
$175,000
Explanation:
a) Data and Calculations:
Marital property = $1,500,000
Cost of property = $575,000
Residual value = $925,000
Alimony to Karen = $750,000 ($150,000 * 5)
Balance (Mike's) = $175,000
The amount of $175,000 signifies the surplus of the fair market value of the marital property after accounting for the property's cost and the alimony paid to Karen. Thus, Mike recognizes a gain of $175,000 following the property sale.
The mean is represented as μ = 58 and the standard deviation σ = 5. With given values of x₁ = 48.5 and x₂ = 60, we compute t-values through the formula t = (x₂ - μ) / σ, which leads to t = (60 - 58) / 5 = 0.4, yielding an area of 0.1554 from the normal distribution curve. Similarly, for the lower value, t is computed as (μ - x₁)/ σ, resulting in t = (58 - 48.5) / 5 = 1.9 with an area of 0.4713. Totaling these, the total area under the curve is 0.4713 + 0.1554 equating to 0.6267 or 62.67%.
