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NEW QUESTION: 1
At December 31, 1998, Off-Line Co. changed its method of accounting for demo costs from writing off the costs over two years to expensing the costs immediately. Off-Line made the change in recognition of an increasing number of demos placed with customers that did not result in sales. Off-Line had deferred demo costs of $500,000 at December 31, 1997, $300,000 of which were to be written off in 1998 and the remainder in 1999. Off-Line's income tax rate is 30%. In its 1998 financial statements, what amount should Off-Line report as cumulative effect of change in accounting principle?
NEW QUESTION: 2
You need to implement a new cost factor scenario for the ad response models as illustrated in the performance curve exhibit.
Which technique should you use?
A. Set the threshold to 0.05 and retrain if weighted Kappa deviates +/- 5% from 0.5.
B. Set the threshold to 0.75 and retrain if weighted Kappa deviates +/- 5% from 0.15.
C. Set the threshold to 0.2 and retrain if weighted Kappa deviates +/- 5% from 0.6.
D. Set the threshold to 0.5 and retrain if weighted Kappa deviates +/- 5% from 0.45.
Performance curves of current and proposed cost factor scenarios are shown in the following diagram:
The ad propensity model uses a cut threshold is 0.45 and retrains occur if weighted Kappa deviated from 0.1
NEW QUESTION: 3
What is required to create an escalation?
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