Determine interpretation of coefficient of determination
Please comment on whether the estimated function in question 1 is a good fit or not. What is the interpretation of coefficient of determination (R-square)? Does the regression show overall significance at 5%? (20%)
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Suppose the government imposes a 25-percent tax on accounting profits. This tax is only levied if a firm is earning positive accounting profits. What will your after-tax accounting profit be in the low-revenue case?
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Al is the sole owner of a C corporation with profits of $200,000. He decides to take a salary of exactly $200,000 to eliminate double taxation. If audited, will the salary be challenged by the IRS? On what basis? What can Al do to demonstrate that
Suppose that the cost function of X is given by: C=500-10X+(25X^2). Find the variable cost (the part that varies with the quantity X). Find the fixed cost (the part that does not vary with the quantity X).
If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money-creating potential of the commercial banking system will?
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