An Advantage of Using the Cross-Sectional Regression Method in Estimating

question 2

Multiple Choice

An advantage of using the cross-sectional regression method in estimating production is that

• A)the problem of technological change over time is overcome.
• B)there is no need to adjust data,which are in monetary terms for geographical differences.
• C)we can assume that all plants operate at their most efficient input combinations.
• D)All of the above

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Definitions:

Average Accounting Return

A financial ratio that compares the average net income to the average investment made in a company.

Payback Method

A method in capital budgeting that measures the duration needed to recover an investment's expenses.

Short-Term Projects

Initiatives or tasks that are expected to be completed or yield results within a relatively brief period, typically less than one year.

Risk Level

An indicator of the level of risk and possible monetary loss associated with making an investment choice.