A variable such as z, whose value is z = x1x2 is added to a general linear model in order to account for potential effects of two variables x1 and x2 acting together. This type of effect is _____
a. impossible to occur
b. called interaction
c. called multicollinearity effect
d. called transformation effect
b
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Which of the following is NOT a necessary step in the DISCOUNTED CASH FLOW ANALYSIS method of valuing equity?
A) Estimate a cost of capital. B) Estimate the present value of terminal value cash flows. C) Calculate the present value of free cash flows over the number of years in question. D) All of the above are necessary steps for the discounted cash flow method of valuation.
Which of the following is an example of volunteering with the help of an information system?
A) A volunteer uses his cell phone to translate books into Spanish while commuting to work. B) A volunteer visits a branch of the CRY organization in his city to donate money. C) A volunteer spends every summer teaching English in schools in Africa. D) A volunteer donates his old clothes to an orphanage in his neighborhood.