Please List Two of the Factors That Influence the Variance

question 24

Essay

Please list two of the factors that influence the variance of 2SLS Bj estimates, and explain how they influence the variance of 2SLS Bj estimates.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered by the seller to the buyer as an incentive for early payment.

Charge Customer

The act of billing a customer for goods or services provided, usually resulting in an accounts receivable entry for the business.

Tile Sales

Revenue generated from the sale of tiles, typically used for flooring or walls.

Contra-revenue Account

An account that is used to record deductions from gross revenue, which results in net revenue.