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NEW QUESTION 24
An airline company wants to improve its understanding of its product and customers. Using an internal model, the company predicts that business class revenues will decrease if the price of business class is reduced, but coach class revenues will increase if the price of coach class is reduced. Why might this be the case?

• A. Coach travelers typically have a lower opportunity cost of time than business travelers.
• B. Business class travel is a luxury good.
• C. There are too many business class seats in the airplane.
• D. Coach travelers often pay out of their own pocket, whereas business travelers do not.

Answer: A

NEW QUESTION 25
Which of the following scenarios is an example of a Type I error?

• A. A null hypothesis which is true is not rejected.
• B. A null hypothesis which is true is rejected.
• C. A null hypothesis which is false is not rejected.
• D. A null hypothesis which is false is rejected.

Answer: B

NEW QUESTION 26
In determining free cash flows, how is the change in net working capital calculated?

• A. Receivables minus Payables (year projected) - Receivables minus Payables (previous year)
• B. Current Assets (previous year) - Current Assets (year projected)
• 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 27
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