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NEW QUESTION: 1
A distribution channel moves goods from producers to customers. Suppose a channel has four producers, each serving the same four customers, and no middlemen. If a distributor is introduced, the number of contacts among producers, customers, and the distributor) in the channel will:
A. Increase from 8 to 16.
B. Decrease from 8 to 4.
C. Be unaffected.
D. Decrease from 16 to 8.
Answer: D
Explanation:
The number of contacts without a distributor is 16 four producers four customers). The number with a distributor is 8 four producers +four customers). Thus, the effort required of producers and consumers is reduced by the distributor, thereby increasing marketing efficiency.
NEW QUESTION: 2
Which of the following is the BEST way for an information security manager to justify ongoing annual maintenance fees associated with an intrusion prevention system (IPS)*?
A. Perform a penetration test to demonstrate the ability to protect
B. Provide yearly competitive pricing to illustrate the value of the IPS.
C. Perform industry research annually and document the overall ranking of the IPS
D. Establish and present appropriate metrics that track performance
Answer: D
NEW QUESTION: 3
The local coefficient of risk aversion for a utility function u(x) where x is wealth is expressed as:
A)
B)
C)
D)
A. Option D
B. Option B
C. Option C
D. Option A
Answer: D
Explanation:
Explanation
https://riskprep.com/images/stories/questions/102.06.a.png is the coefficient of risk aversion at x. Its inverse, ie https://riskprep.com/images/stories/questions/102.06.b.png, is called the coefficient of risk tolerance.
Risk aversion or risk tolerance is indicated in a utility function by its curvature. A concave utility function indicates risk aversion and a convex function indicates risk tolerance. The curvature is measured as a ratio of the second derivative to the first derivative of a function. A negative second derivative implies concavity. The expression is the coefficient of risk aversion, and its inverse, which is in the same units as wealth, is called the coefficient of risk tolerance.