The Principal-Agent Problem Is a Problem

question 89

Multiple Choice

The principal-agent problem is a problem

• A)caused by a person (principal)who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
• B)caused by agents pursuing their own interests rather than the interests of the principals who hired them.
• C)of the power system of boss and subordinate where the boss (principal)exerts influence over his subordinates (agents)using punishment or threat.
• D)that exists when a person (principal)has more information about the task than the agent he hires to perform the task.

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly of the mean.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Population Proportion

Refers to the fraction or percentage of individuals in a population having a particular property or characteristic.

Large Animals

Typically refers to animals of a considerable size, often used in contexts related to veterinary science, zoology, or animal husbandry.