Buyers who are persuaded to take a product home to try it out, _____
a. are likely to return the product later
b. are lucky the seller is not concerned about the buyers' credit ratings
c. will not derive any utility from that product.
d. have no money to pay at the time
e. will be reluctant to return the product when payment is due
e
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What will be an ideal response?
In the case of errors-in-variables bias,
A) maximum likelihood estimation must be used. B) the OLS estimator is consistent if the variance in the unobservable variable is relatively large compared to variance in the measurement error. C) the OLS estimator is consistent, but no longer unbiased in small samples. D) binary variables should not be used as independent variables.