Changes in Consumer Preferences, Tax Laws, Interest Rates, Levels of Risk

question 46

Multiple Choice

Changes in consumer preferences, tax laws, interest rates, levels of risk, exchange rates, demand for employees and their expertise, etc. are all conditions a company regularly face. Predicting and addressing these changing conditions requires what kind of analytics?

• A) Descriptive
• B) Diagnostic
• C) Predictive
• D) Prescriptive

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Definitions:

Compounded Semi-annually

Describes a type of interest calculation where the interest is added to the principal amount twice a year, leading to interest on the interest in the next compounding period.

Ordinary Perpetuity

A series of indefinite cash flows that occur at regular intervals.

Ordinary Annuity

A financial product where payments of a fixed amount are received at the end of equal intervals.

Nominal GNP

Gross National Product measured in current prices, without adjusting for inflation.