What is the Lombard Rate? The term Lombard rate has been used globally by people in various sectors to refer to the interest rate used by the central bank - Bundesbank. Moreover, the term Lombard credit refers to the credit given to other banks by the Bundesbank against the pledges presented. These pledges are mostly life insurance policies or secur...

What is a Box-Cox Transformation? A Box-Cox power transformation refers to a way of transforming response to satisfy the usual regression assumption of homogeneity and normality of variance. The regression model is therefore used to fit the transformed response. The Box-Cox power transformation can be used to transform a variable for other various p...

What is Herzberg's Two-Factor Theory? The Herzburg two-factor theory, also known as the Hygiene Theory, posits that job satisfaction and dissatisfaction are not opposites. Rather, certain factors must be present to avoid dissatisfaction. Other factors must be present to provide satisfaction.  How Does Satisfaction Relate to Dissatisfaction? The rese...

When is a  Tying Contract Illegal Under the Clayton Act? A tying contract is one in which a product is sold or leased only on the condition that the buyer purchase a different product or service from the seller or lessor. A common type of tying, known as full-line forcing, is where a seller compels the buyer to take a complete product line from the ...

What is Random Factor Analysis? Random factor analysis refers to a statistical technique that is used to identify the origin of the randomly collected data. Random factor analysis is applied when you want to determine whether the underlying trend is the cause of the outlying data or the event occurs randomly. Generally, it tries to explain the seemi...

What is Alternative Dispute Resolution (ADR)? ADR, as the name implies, is an alternative to resorting to litigation to resolve a legal dispute between parties. The most common forms of ADR are: Mediation  and Arbitration. How does Alternative Disputre Resolution affect litigation? Since ADR is an alternative to litigation, disputing parties do not ...

What is a T-Account?  Financial reports that use the double-entry bookkeeping method are referred to as T-Account informally. The appearance of the book keeping entries resembles the letter T, hence the moniker. Its a ledger account that has the account title at the top, debits on the left, credits on the right while a middle line separates the two ...

What is Organizational Culture? Edgar Schein (1992) defines organizational culture as: "the basic tacit assumptions about how the world is and ought to be that a group of people are sharing and that determines their perceptions, thoughts, feelings, and, their overt behavior". What are the Three Levels of Culture? Description The three levels of cult...

What is Algorithmic Trading? Algorithmic trading is a system of trading whereby advanced mathematical tools and computer programs are used in facilitating trade and making decisions in the financial markets. Algorithmic trading is a method that helps in facilitating trade and solve trading problems using advanced mathematical tools. This system of t...

What is Exports as Percentage of GDP? Exports as a percentage of GDP is simply the dollar value of all exports divided by the total GDP (measured by what is consumed or what is produced).  Related Topics Trade Balance: Surplus and Deficit Mercantilism J Curve National Trade Data Bank Capital Account (Economics) Merchandise Trade Balance Current Acco...