Yvonne Yang, VP of Finance at Discrete Components, Inc

question 95

Multiple Choice

Yvonne Yang, VP of Finance at Discrete Components, Inc.(DCI) , wants a regression model which predicts the average collection period on credit sales.Her data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and 6%) , and total assets of credit customers (small, medium, and large) .The number of dummy variables needed for "total assets of credit customer" in Yvonne's regression model is ________.

• A)1
• B)2
• C)3
• D)4
• E)7

Explain the impact of market demand changes on firm profits in price-taker markets.

Understand the relationship between a firm’s average variable cost, average total cost, and market price in the context of operational decisions.

Identify the characteristics and implications of operating in a competitive price-taker market.

Understand the principles and characteristics of competitive price-taker markets.

---

Definitions:

Meritocracy

A system where success and advancement are based on individual ability and talent rather than on class privilege or wealth.

MCAT

The Medical College Admission Test, a standardized exam used to assess competencies for medical school.

Medical School

An educational institution dedicated to the study of medical science, where students are trained to become physicians.

Academic Misconduct

Any action by a student that gives them an unfair academic advantage or compromises the integrity of the educational process, including plagiarism and cheating.