HBX New 2021 CORe Sample Questions Reliable CORe Test Engine
Feel HBX CORe Dumps PDF Will likely be The best Option
NEW QUESTION 126
The Beveridge curve displays the relationship between the unemployment rate and the job vacancy rate (the number of unfilled jobs divided by the labor force). A government official wants to forecast the job vacancy rate for next month to see whether jobs posted now are likely to be filled. The official runs a simple regression using monthly U.S. data from 20012013; the results are given below.
If the unemployment rate next month is expected to be 6.6% and the vacancy rate this month was 2.58%, by how much is the vacancy rate forecasted to change? Note that percentages are given as values between 0 and 1.
- A. The job vacancy rate is forecasted to decrease by 3.88 percentage points.
- B. The job vacancy rate is forecasted to decrease by 20.23 percentage points.
- C. The job vacancy rate is forecasted to decrease by 0.18 percentage points.
- D. The job vacancy rate is forecasted to increase by 2.39 percentage points.
Answer: C
NEW QUESTION 127
A group of season ticket holders wants to forecast attendance at National Football League (NFL) games for the upcoming season. One ticket holder argues that using the population of the United States as the only independent variable would explain as much as using both the United States population and the percent change in disposable income (per capita) as independent variables. Another ticket holder argues that using the percent change in disposable income (per capita) asthe only independent variable would provide the most accurate forecast. Listed below are the Adjusted R2 values for three regression models. Based on these values, and keeping in mind that the ticket holders are only concerned about forecasting, what is the correct conclusion?
- NFL Attendance vs. US Population and Percent Change in Disposable Income.
Adjusted R2= 0.8964 - NFL Attendance vs. US Population: Adjusted R2= 0.8609 - NFL Attendance vs. Percent Change in Disposable Income. Adjusted R2= -0.0244
- A. There is not any information regarding the p-values of the independent variables, so it is impossible to determine the explanatory power of the regression models.
- B. The Adjusted R2 of NFL Attendance vs. US Population and Percent Change in Disposable Income is higher than that of either single variable regression model, so both US Population and Percent Change in Disposable Income should be included in the regression model.
- C. The Adjusted R2 of NFL Attendance vs. Percent Change in Disposable Income is negative, so Percent Change in Disposable Income should be excluded from any regression model.
- D. The Adjusted R2 of NFL Attendance vs. US Population is higher than that of NFL Attendance vs. Percent Change in Disposable Income, so US Population should be the only independent variable in the regression model.
Answer: B
NEW QUESTION 128
Company B sold a service contract that covers a two-year period for $10,000. The service period commenced on July 1, Year 1. Service revenue is recognized evenly throughout the contract period. What amount should Company B report as deferred revenue from this service contract on its balance sheet on December 31, Year 1?
- A. $7,500
- B. $5,000
- C. $2,500
- D. $10,000
Answer: A
NEW QUESTION 129
Based on the multiple regression output below, choose the variable with the highest level of significance.
- A. Intercept
- B. X Variable 9
- C. X Variable 5
- D. X Variable 3
Answer: B
NEW QUESTION 130
Which of the following methods for valuing and expensing inventory is NOT allowed under the International Financial Reporting Standards (IFRS)?
- A. Standard Cost
- B. First In First Out (FIFO)
- C. Last In First Out (LIFO)
- D. Weighted Average
Answer: C
NEW QUESTION 131
Which of the following options is presented in the above accounting journal entry?
- A. Sale of goods at cost
- B. Sale of fixed assets on credit
- C. Sale of goods on account
- D. Capitalization of inventory
Answer: C
NEW QUESTION 132
Which of the following options is an example of an expense?
- A. Purchase of a new vehicle for $30,000 by a delivery company
- B. Payment of $6,000 for vehicle insurance covering the next year
- C. Consumption of $500 of electricity for the head office building
- D. Purchase of $10,000 of fabric to be used by a clothing manufacturer
Answer: C
NEW QUESTION 133
An asset manager performs a regression analysis of Boeing's monthly returns against the monthly returns of the Standard and Poor's 500 (S&P 500), a stock market index of 500 large companies. Since the financial market is so volatile, the asset manager decides that it is nearly impossible to forecast exactly what Boeing's monthly returns will be and therefore asks the team to provide a range of possible monthly returns for Boeing. The manager wants to cover as many potential outcomes as possible and asks the team to construct a 99.7% prediction interval. Given the regression output below, which of the following options is a reasonable estimate of the 99.7% prediction interval for Boeing's monthly returns, assuming that the S&P 500 monthly returns decline by 3%? Note that percentages are represented as values between 0 and 1.
- A. 2.26% to 2.58%
- B. -2.58% to -2.26%
- C. -2.66% to -2.18%
- D. 2.18% to 2.66%
Answer: C
NEW QUESTION 134
In determining free cash flows, how is the change in net working capital calculated?
- A. Current Assets (previous year) - Current Assets (year projected)
- B. Receivables minus Payables (year projected) - Receivables minus Payables (previous year)
- C. Ending balance of cash (previous year) - Ending balance of cash (year projected)
- D. Current Assets minus Current Liabilities (year projected) - Current Assets minus Current Liabilities (previous year)
Answer: D
NEW QUESTION 135
In order to predict an employee's probability of success at work, a company requires employees to complete a test that measures Intelligence Quotient (IQ) and Emotional Intelligence Quotient (EQ). A new manager at the company believes that the probability of being successful at work is closely related to an employee's Reputation Quotient (RQ).
Based on the two regressions outputs below, does adding the RQ component help forecast the probability of being successful at work?
- A. No, the coefficient of RQ is close to 0.
- B. Yes, the standard error decreased from 0.11 to 0.10 when RQ was added.
- C. Yes, the Adjusted R2 increased from 0.8441 to 0.8670 when RQ was added.
- D. Yes, the R2 increased from 0.8504 to 0.8751 when RQ was added.
Answer: C
NEW QUESTION 136
For valuation purposes, the opportunity cost and inflation are two main concepts that explain the:
- A. Riskiness of a project
- B. Real rates of interest
- C. Economic value added
- D. Time value of money
Answer: D
NEW QUESTION 137
A local restaurant owner decides to poll individuals randomly regarding how much they would be willing to spend on a romantic dinner for two. The owner takes a preliminary sample of 32 people and finds that the average amount those surveyed were willing to pay is $35 with a standard deviation of $10. The owner is not satisfied, however, because the owner wants to be 95% sure that the mean of the new sample falls within $2 of the true mean. What is the minimum number of people the owner should interview? Note that z=1.96 for a 95% confidence interval.
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
NEW QUESTION 138
A pharmaceutical company was recently awarded a 20 year patent for a new medicine it has developed. Which of the following results could be a consequence of this patent? (Select all that apply.)
- A. Pharmaceutical companies will be incentivized to develop new medicines in the future.
- B. The high price of the medicine will result in insufficient demand.
- C. The pharmaceutical company will charge higher prices for the drug.
- D. The cost to produce the medicine will remain high after the patent expires.
- E. The company will drive its competitors out of the pharmaceutical industry, limiting innovation.
Answer: A,C
NEW QUESTION 139
Company B is evaluating whether to repair or replace a piece of plant equipment. Which of the following factors would NOT be taken into consideration when determining the relevant cash flows?
- A. Estimated useful life of the repaired asset for tax purposes
- B. Plan to capitalize the cost of the repairs for financial reporting purposes
- C. Estimated cost of the repairs
- D. Operating costs of the repaired asset
Answer: B
NEW QUESTION 140
After a new report concludes that airplane exhaust has a negative impact on the environment, a government regulation is introduced which reduces the number of flights airlines can make in a day by 10 percent. To comply with this regulation, a certain airline halves the frequency of flights on several of its routes but maintains its original fleet of airplanes. What happens to the costs for the airline?
- A. Cost for each additional flight will increase.
- B. Average cost per flight will increase.
- C. Total costs will fall by 10 percent.
- D. Total costs for the airline will increase.
Answer: B
NEW QUESTION 141
Which of the following statements is characteristic of all assets?
- A. They can be converted to cash in the short term.
- B. They are owned or controlled by the organization.
- C. They are obligations to a third party.
- D. They are owned free and clear by the organization.
Answer: B
NEW QUESTION 142
The owner of a t-shirt store on a beach sells 200 shirts per month in the summer for a price of $15.00. During the winter months, the owner reduces the price to $9.00 and sells 100
shirts per month. The store must be leased in one-year increments at $400 per month in rent. The cost of labor, materials, and utilities are an additional $600 a month. Should the store remain open during the winter months?
- A. Yes, the store should remain open during the winter months.
- B. No, the store should shut down during the winter months.
- C. Yes, the store should remain open but should lower prices to $6.00 during the winter months.
- D. No, the store should shut down completely.
Answer: A
NEW QUESTION 143
Many people argue that giving patents for medicines is unfair, because it prevents many people from accessing the products they need to live a healthy life. Why do governments allow patents for medicines?
- A. Patents increase consumers' willingness to pay for medicines.
- B. Patents protect consumers from counterfeit medicines.
- C. Governments hope to earn tax revenues on monopoly profits.
- D. Patents help promote innovation through easier recovery of fixed costs.
Answer: D
NEW QUESTION 144
Which of the following practices conforms to the conservatism principle?
- A. Reporting inventory at the lesser value between cost and market value
- B. Recognizing a gain when investments appreciate in value
- C. Capitalizing research costs incurred before a product is proven to be technologically feasible
- D. Reporting a fixed asset at its net book value
Answer: A
NEW QUESTION 145
An online music streaming company has two subscription options:
1.Listen to unlimited music with five minutes of advertisements for every hour of music.
2.Pay a monthly fee and listen to unlimited music with no ads.
If a potential customer wants to subscribe to the company but is indifferent between options 1 and 2, the customer's willingness to pay (WTP) is:
- A. Positive for music and positive for advertising.
- B. Positive for music and negative for advertising.
- C. Positive for music and unknown for advertising.
- D. 0 for music and negative for advertising.
Answer: B
NEW QUESTION 146
A college senior is considering starting a business instead of accepting a job that offers a $50,000 salary. To determine if there would be demand for the business, the student has spent $1,000 to survey potential customers. After collecting survey data, the student estimates that the business would earn $80,000 in revenues per year. The student should start the business if the annual cost of running the business is less than:
- A. $80,000
- B. $30,000
- C. $29,000
- D. $79,000
Answer: B
NEW QUESTION 147
Two years ago, the purchasing manager at a company spent $25,000 on a new machine that would improve production efficiency at the company. The manufacturers of the machine release an updated model that costs $35,000 and that promises to further improve production efficiency. Under what conditions should the purchasing manager upgrade to the new model?
- A. If the savings from the additional efficiency improvements are large enough to offset the $60,000 spent on machines
- B. If the efficiency improvements from the old machine did not result in enough savings to offset the $25,000 purchase price
- C. If the savings from the additional efficiency improvements are large enough to offset the $10,000 difference in price between the machines
- D. If the savings from the additional efficiency improvements are large enough to offset the $35,000 cost of the new machine
Answer: D
NEW QUESTION 148
For a standard normal distribution (=0, =1), the area under the curve to the left of 0.37 is 0.6443. What is the probability of getting a value less than -0.37 or greater than 0.37?
- A. 71.14%
- B. 35.57%
- C. 64.43%
- D. 28.86%
Answer: A
NEW QUESTION 149
Changing accounting assumptions from year to year without having justifiable reasons for the changes is a departure from the accounting principle of:
- A. Historical cost
- B. Conservatism
- C. Consistency
- D. Verifiability
Answer: C
NEW QUESTION 150
......
Use Valid New CORe Test Notes & CORe Valid Exam Guide: https://www.dumpstorrent.com/CORe-exam-dumps-torrent.html
CORe exam torrent HBX study guide: https://drive.google.com/open?id=1GioWEy29CZgJv33bu-YSAvFLHUvMd_26