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In statistics, the variance inflation factor (VIF) is the ratio of the variance of a parameter estimate when fitting a full model that includes other parameters to the variance of the parameter estimate if the model is fit with only the parameter on its own. [1]
Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project.It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.
is the expected inflation rate g {\displaystyle g} is the real growth rate in earnings (note that by adding real growth and inflation, this is basically identical to just adding nominal growth) Δ S {\displaystyle \Delta S} is the changes in shares outstanding (i.e. increases in shares outstanding decrease expected returns)
Like the consumer price index (CPI), the GDP deflator is a measure of price inflation/deflation with respect to a specific base year; the GDP deflator of the base year itself is equal to 100. Unlike the CPI, the GDP deflator is not based on a fixed basket of goods and services; the "basket" for the GDP deflator is allowed to change from year to ...
A producer who has unused capacity can (and will) quickly respond to price changes in his market assuming that variable factors are readily available. [1] The existence of spare capacity within a firm, would be indicative of more proportionate response in quantity supplied to changes in price (hence suggesting price elasticity).
Forecasts for a near-term stock-market correction are getting more plentiful. The S&P 500's recent performance and technical indicators suggest a possible downturn.
This relationship holds true for all linear demand equations. The importance of being able to quickly calculate MR is that the profit-maximizing condition for firms regardless of market structure is to produce where marginal revenue equals marginal cost (MC). To derive MC the first derivative of the total cost function is taken.
It's a classic tale: You have last-minute guests coming over for dinner or a bake sale fundraiser you didn't find out about until the night before—and now you need to concoct some tasty treats ...