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The determining function that drives share of accepted job offers for a company is given by the following equation: AcceptedOfferst = α0 + α1StartingSalaryt + α2EconomicClimatet + Ut , where the unit of observation is particular month (t ). Suppose one wanted to use the national unemployment rate (unemploymentt) as a proxy for EconomicClimate (i.e., ran the above regression replacing the UnemploymentRate with EconomicClimate). How should we interpret the estimated coefficient on the UnemploymentRate (i.e., the proxy variable)?
Select one:
a. A good estimate for α1 + α2 in the above determining function.
b. A good estimate for α2 in the above determining function.
c. A good estimate for α1 in the above determining function.
d. None of the answers is correct.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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