(2011) is to evaluate the potential link between economics education and the nefarious business decisions including bankruptcies on the expense of shareholders and employees, Ponzi schemes and other such acts which can be categorised as greed. Wang et al. (2011) argues that self-interest is the fundamental assumption of rational choice models in Economics and this self-interest can be subjectively seen as greed. The father of economics; Adam Smith himself advocated and introduced the concept of self-interest as the dominant theme in his classical theories. However, what amount of self-interest can be classified as greed remains an ambiguous question and forms the main criticism to Wang et al.
Inductive reasoning in economics does the reverse of deductive reasoning namely, it begins with an individual problem or question and proceeds to form a general principle based on evidence observed in the real world of economic activity. Induction in economics requires rigorous use of the methodology of economic research (www.yourarticlelibrary.com). This includes use of the mathematical modeling and statistical processes or economic measurement. The process involves the problem, collection, classification and analysis of data, observation and generalization. Merits of such a method of reasoning are that it is realistic and forms a solid foundation for future enquiries (www.yourarticlelibrary.com).
Particularly, regression analysis, a statistical process to estimate the connection among dependent and independent variables. Accordingly, by using regression analysis the analyst can create the score that produced by those variables to predict what company needs like customer purchase behavior. The third and the last model is assumptions. Both data and statistics have assumptions to make a viewpoint and conclusion about the predictive data. Assumptions are holding the key to our predictive analytics results.
According to Neuman (2014), “A positivist approach implies that a researcher begins with a cause-effect relationship that he/she logically derives from a possible causal law in general theory and logically links the abstract ideas to precise measurement of the social world.” This type of orientation tests hypotheses by carefully analysing numbers from the measures. With this said, I thought this epistemological orientation is appropriate for my proposal because I want to find a relationship between variables and how one impacts or influences the
Main arguments involve the theory fails in providing sufficient account of its dynamic properties such as ‘internal relations’ between policy makers and the agents (entrepreneur). Their main concern is, Keynes could elaborate in his theory which ways the group of agents that participate in trade will be able to integrate with the policy makers of host country so as to ensure maintenances of his ideas of effective demand in the economy (Jespersen and Madsen 2012: 50). After criticism of Keynes’s theory there exists another group successors of Keynes identified as Keynesians and post-Keynesians. Each group has its own way of analysing trade and its impact on current account of the country. Keynesians who are also known as neoclassical synthesis develop their theory which considers some of ideas from the general theory.
The NPV technique empowers companies to change in accordance with the difficulties of working with constrained financial resources. NPV can be utilized to rank fundamentally unrelated or competing investment to decide the ones that fall inside the planned furthest reaches of the business. For instance, a business element may have a practical project that falls beyond
Head to Head Comparisons Predictive Analytics Statistics Definition Predictive analytics is branch of the data analytics to predict the future events. Statistics in simpler terms is collection of numerical facts. It is the science of collecting, classifying and representing the numerical data. Why it matters? Predictive analytics can identify the risks and opportunities
The purpose of this study is to differentiate what WACC stands for, what it represents and how it influences management to make decisions. The study seeks answer the research question, Are WACC and ENPV are conected and if so explain everything connected to their interdependence? The goal is to use current knowledge and new discoveries in the field to proove if there is interconnection between these two and to explain how companies can use WACC and ENPV to be more profitable. The WACC stands for Weighted Average Cost of Capital. It is the measure of the average cost of capital a firm is paying for it's debt.
Prospect theory Young Joon Suh Definition Prospect theory is a theory of decision making that involves risk and uncertainty. It is an economic theory with psychological elements that aims to explain how people decide between alternatives with probabilistic gains and losses. The theory is based on the premise that people make choices based upon their psychological value of potential losses and gains rather than the final outcome. Prospect theory explains why people make decisions that deviate from rational decision making by examining how the expected outcomes of alternative choices are perceived (Kahneman & Tversky, 1979). Historical background Until 1970s, the dominant theory for decision making research was Expected utility theory (Barberis,
At some pints of my life, I have used utilitarian moral reasoning, which can be associated with economic cost-benefit analysis somehow, where good consequences should be maximized over bad consequences. Additionally, I tend to believe that whether actions are considered morally right or wrong would somehow depend on their effects. Thus, under this philosophical view we can evaluate a wide range of situations that take place in our lives, where we are aware in advance that our decisions would be evaluated wrong or right depending entirely on its consequences. From the other hand, this theory may be questioned the adequacy of this theory and how practically it can be utilized in our everyday decisions, however the primary agenda of utilitarian approach calls people to be more motivated towards maximizing the overall happiness, which in turn can contribute towards right moral