A bank offers a week long management training programme to all its loan officers atthe end of the second year in their job. Participation in the programme is voluntary. The bank is interested in knowing whether participation in the programme makes itmore likely that a loan officer is promoted to branch manager. You have data on allthe bank’s loan officers, their participation in the programme, and whether they havebeen promoted between years three and five of being in their job. You run a regressionfor the promotion decision on a constant and a dummy for participation in the training programme. Required:
a. Suppose the bank encourages participation in the training programme by sending a personal letter from the CEO to selected employees who have been recommended by their supervisor as showing particular potential for a position in management. Would it be useful to use the CEO letter as an instrument for participation in the training programme? Explain why or why not.
b. Suppose the bank encourages participation in the training programme by sending a personal letter from the CEO to a randomly chosen set of employees. Would it be useful to use this CEO letter as an instrument for participation in the training programme? Explain why or why not.

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.

Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.