swer the following in the space provid ne attributes of a "good" econometric model? at are the consequences of omitting a relevant variable(s) from a model? What are the consequences of including irrelevant variables in a model?

Q: Michigan Tech received a donation of $436,133 to be used for scholarship funds. The money will be…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: Question 5 For the below cash flow diagram, determine the equivalent present worth Y for a given…

A: The problem is asking us to find the present worth (Y) of a series of future cash flows. The cash…

Q: You are eligible for a 30 year fixed-rate home mortgage with an interest rate of 3.6% per year. If…

A: Present value is the concept that states that an amount of money invested today is worth more than…

Q: What is the IRR?

A: The internal rate of return (IRR) is a financial computation  that is used to calculate the…

Q: A. How much money should be deposited each year for 12 years if you wish to have $25,200 in the…

A: The future worth formula is FV=PV(1+i)n , where the PV rises for each period into the future by a…

Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…

A: The objective of this question is to find out the amount that needs to be deposited monthly in an…

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: If you deposit $4,000 4 years from today, how much can you withdraw 10 years from today if interest…

A: Compounding refers to the process in which the interest is incur on both the principal amount and…

Q: 6) You have a balance of $7500 on your credit card and you make no further charges. If your APR is…

A:

Q: Mac has deposited $6,000 in a money market account with a variable interest rate. The account…

A: Deposited amount = $6000 Time period = 9 months The interest rate is 8%, 9%, and 8%.

Q: BRAM Question 3 (15%) You need to borrow $20,000, and two different companies offer you the…

A: **Loan Amount: 20,000∗∗∗∗MARR(MinimumAttractiveRateofReturn):5∗∗PlanA:DecreasingAnnualPayment∗∗ Year…

Q: Suppose you make 30 annual investments in a fund that pays 7% compounded annually. If your first…

A: The total amount in the fund after the 30th deposit will be approximately $1,280,566 (Rounded to…

Q: ack Rabbit has saved $10,000 annually for the last 35 years in an account eaming 8%. If Jack…

A: Jack saved $10,000 over last 35 yearsThe interest rate is 8%. Jack estimates he will be living for…

Q: You are going to put $X into an account each year for 5 years, beginning in Year 1. Then, from Years…

A: We have been given the following cash flows:Cash outflows from year 1 (beginining in year 1) to year…

Q: 8. Jones Corporation borrowed P9,000 from Brown Corporation on Jan. 1, 1978 and P12,000 on Jan. 1,…

A: Cashflow shows the stream of cash we get within the period. It includes the cash paid and cash…

Q: When a uniform series begins at a time other than at the end of period 1, it is called: Annual worth…

A: In engineering economics, a "uniform series" or "ordinary annuity" refers to a sequence of equal…

Q: from now (n = 2) in || a savings account that pays 10% interest, how much would you have at the end…

A: Formula:  Value at the end of ten years = amount in year 1*(1+I)n+amount in year 2*(1+I)(n-2)

Q: If you take four (4) $100 bills out of your secret hiding place and deposit them into your savings…

A: Here, $100 bills are kept with the individual at his secret hiding place. This money will be…

Q: You are an avid 34 year old coffee drinker, and never miss a day without your $4.00 Starbucks caffe…

A: The value of money, then, is the quantity of goods in general that will be exchanged for one unit of…