Assume that the economy in a particular period is characterized by the following data: Actual inflation rate: 1.8 percent Target inflation rate: 3.0 percent Neutral real interest rate: 1.8 percent Out
Answers
The real interest rate in this case is 3.0 percent.
The neutral real interest rate is 1.8 percent and the inflation rate is 1.8 percent. When the target inflation rate is 3.0 percent, we will calculate the real interest rate using the Fisher effect. To calculate the real interest rate, you must first understand what the Fisher effect is.
The Fisher effect is a theory that explains how the real interest rate is determined. The nominal interest rate minus the expected inflation rate equals the real interest rate. If the expected inflation rate is greater than the nominal interest rate, the real interest rate is negative. If the expected inflation rate is less than the nominal interest rate, the real interest rate is positive.
The formula for calculating the Fisher effect is as follows:
Real Interest Rate = Nominal Interest Rate - Expected Inflation Rate
Using the above formula, we can calculate the real interest rate as follows:
3.0% (target inflation rate) - 1.8% (actual inflation rate) = 1.2% (expected inflation rate)1.8% (neutral real interest rate) + 1.2% (expected inflation rate) = 3.0%
Therefore, the real interest rate in this case is 3.0 percent.
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Related Questions
Wine and roses, incorporated, offers a bond with a coupon of 8. 5 percent with semiannual payments and a yield to maturity of 8. 34 percent. The bonds mature in 17 years. What is the market price of a $1,000 face value bond?.
Answers
The market price of a $1000 face value bond is $1,059.32
What is market price?
It is determined using the current interest rate compared to the interest rate stated on the bond. The market price of the bond comprises two parts. The first part is the present value of the bond's face value. The second part is the present value of the bond's interest payment.
How to calculate market price?
Par / Face Value of the bond = $1000
Semi annual coupon payment
= par value * coupon rate * 1 / number of coupon payments per year
= $1000 * 8.5% * 1/2
= $42.5
Number of coupon payments (n)
= Years to maturity * number of coupon payments per year
= 17 * 2
= 34
Semi Annual Yield (YTM)
= yield to maturity / number of coupon payments per year
= 0.0834 / 2
= 0.0417
Now, let's calculate the current market price of bond
Price = Coupon payment *(1-(1+YTM)^-n)/YTM + Face Value / (1+YTM)^n
= 45 * \(\frac{(1-(1+0.0417)^{-34})}{0.0417} + \frac{1000}{(1+0.0417)^{34} }\)
= 45 * \(\frac{(1-0.2493155798)}{0.0417} + \frac{1000}{4.010980785}\)
= 45 * 18 + 249.31557981
= 810 + 249.31557981
= $1,059.32 (rounded)
So the bond's current market price of wine and roses, Inc. is $1,059.32
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how do you know a selection device is valid? what are the possible consequences of using invalid selection methods? how can an organization ensure that its selection methods are valid?
Answers
Poor quality and unsuitable candidates will frequently be hired as a result of an ineffective staff selection process. If it is unreliable, it will make the negative effects worse and ultimately kill the organization.
Define the term invalid selection methods?Validity is a gauge of how effective a particular strategy is. A selection procedure is legitimate if it increases your chances of selecting the best candidate for the position.
It is feasible to evaluate recruiting choices based on desired results like a quick pick-up time, low attendance, or a solid safety record.Finding a new hire who is most fit for the position at hand is the process of employee selection, sometimes referred to as applicant selection. The steps in the hiring process are determined by the position for which you are hiring, your budget for recruiting, the seniority of the post, the resources at your disposal, and your organizational requirements.However, the majority of organization have a secret goal in mind when hiring new personnel. These qualities might not be present in these selecting processes.
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When the productivity of the workers in a Firm increases what would happen to the demand for labour in that firm if the quantity demanded for the product does not change?
Answers
Answer:
The demand for labour would decrease because it will be costly for the business keeping the workers.
Explanation:
If the quantity demanded for the product does not change while workers productivity increase this will make the quantity demanded for labour decrease because its costly to keep workers if the consumers demand does not change this means that the business is not making any profit.
why does the combined total of individual account performance materiality commonly exceed the estimate of planning materiality?
Answers
The combined total of individual account performance materiality often exceeds the estimate of planning materiality because it takes into account the materiality of each individual account within the financial statement as a whole.
What is planning materiality?Planning materiality is set during the planning phase of an audit to determine the tolerable misstatement for the audit as a whole. The auditor then determines account materiality using a specific method.
However, when compared to planning materiality, account materiality is typically lower, indicating that the auditor has reduced the materiality threshold when assessing individual accounts.
Materiality levels for individual accounts are based on planning materiality, but they are set at a lower level than planning materiality. Materiality is used by auditors to assess whether the financial statements are free of material misstatements.
Account materiality is calculated by multiplying the planning materiality by a percentage, which varies based on the account's risk level.
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What type of advertising aims to spread a particular social message or to promote public welfare?
A.
corporate advertising
B.
retail advertising
C.
product advertising
D.
public service advertising
Answers
Answer:
D, Public service advertisements
A small-scale contractor is looking to expand his construction fleet through two mutually exclusive alternatives: either a) the purchase of additional pick-up trucks or b) the purchase of an additional backhoe. The contractor has an MARR of 8% per year.
Answers
The contractor's minimum attractive rate of return (MARR) is 8% per year. The contractor is seeking to increase his construction fleet through the acquisition of additional pick-up trucks or an additional backhoe. The two mutually exclusive options are as follows: a) The purchase of additional pick-up trucks. b) The purchase of an additional backhoe.
The contractor should choose the alternative that has the higher present value. The acquisition of additional pick-up trucks has an initial outlay of $60,000, an annual revenue of $20,000, and an annual maintenance cost of $10,000. Its estimated useful life is five years, after which it can be sold for $10,000. The net present value (NPV) of the project can be calculated using the following formula: Net Present Value (NPV) = Σ [Rt / (1 + r)t] - C where Rt is the net cash flow in year t, r is the discount rate, and C is the initial investment.
The net cash flow for each year is as follows: Year 1: $20,000 - $10,000 = $10,000Year 2: $20,000 - $10,000 = $10,000Year 3: $20,000 - $10,000 = $10,000Year 4: $20,000 - $10,000 = $10,000Year 5: $20,000 - $10,000 + $10,000 = $20,000The present value of each cash flow is as follows: Year 1: $9,259Year 2: $8,566Year 3: $7,918Year 4: $7,312Year 5: $12,991The NPV of the acquisition of additional pick-up trucks is as follows: NPV = ($9,259 + $8,566 + $7,918 + $7,312 + $12,991) - $60,000NPV = $46,046The acquisition of an additional backhoe has an initial outlay of $200,000, an annual revenue of $100,000, and an annual maintenance cost of $40,000. Its estimated useful life is also five years, after which it can be sold for $60,000.The net cash flow for each year is as follows: Year 1: $100,000 - $40,000 = $60,000Year 2: $100,000 - $40,000 = $60,000Year 3: $100,000 - $40,000 = $60,000Year 4: $100,000 - $40,000 = $60,000Year 5: $100,000 - $40,000 + $60,000 = $120,000The present value of each cash flow is as follows: Year 1: $55,556Year 2: $51,282Year 3: $47,337Year 4: $43,695Year 5: $77,917The NPV of the acquisition of an additional backhoe is as follows: NPV = ($55,556 + $51,282 + $47,337 + $43,695 + $77,917) - $200,000NPV = $76,787Therefore, the contractor should acquire an additional backhoe as it has a higher NPV than the acquisition of additional pick-up trucks.
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In-Class Activity:
• Transportation & Logistics Industry as percentage of GDP for both the MENA Region and the UAE.
• Major Transportation Infrastructures development projects in the UAE.
Answers
Transportation and logistics are two interconnected terms that refer to different aspects of the movement of goods, people, and information within a supply chain or across various locations.
Transportation & Logistics Industry as a Percentage of GDP:
1. MENA Region: The transportation and logistics industry plays a significant role in the economies of the MENA region. The specific percentage of the industry's contribution to the region's GDP may vary among countries. According to the World Bank, in 2019, the transport sector's contribution to the GDP of the Middle East and North Africa region was approximately 7.9%.
2. UAE: The UAE has been focusing on developing its transportation and logistics sector as part of its economic diversification efforts. According to the UAE Ministry of Economy, the transport and storage sector, which includes the transportation and logistics industry, accounted for around 14.8% of the UAE's GDP in 2019.
Major Transportation Infrastructure Development Projects in the UAE:
The UAE has undertaken several significant transportation infrastructure projects to support its economic growth and enhance connectivity. Here are a few notable examples:
1. Etihad Rail: The Etihad Rail project aims to develop a national rail network connecting all seven emirates of the UAE. It will facilitate the movement of passengers and freight, offering an alternative to road transportation.
2. Dubai Metro: Dubai has an extensive metro system known as the Dubai Metro. It consists of both the Red Line and the Green Line, providing efficient transportation within the city and connecting major residential and commercial areas.
3. Abu Dhabi Metro: The UAE capital, Abu Dhabi, has plans to develop its own metro system to improve public transportation. The project is currently in the planning and development stages.
4. Expansion of Airports: The UAE has been expanding and upgrading its airports to accommodate the growing number of passengers and cargo. Examples include the expansion of Dubai International Airport and the development of Al Maktoum International Airport (Dubai World Central).
5. Khalifa Port: Located in Abu Dhabi, Khalifa Port is a state-of-the-art container terminal and industrial zone that serves as a key logistics hub for the region. It supports the UAE's growing maritime trade and offers extensive connectivity with global markets.
These are just a few examples of the major transportation infrastructure development projects in the UAE. The country continues to invest in enhancing its transportation and logistics capabilities to support its economic growth and diversification efforts. For the most up-to-date information, I recommend referring to official sources or recent reports on the subject.
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what is the potential for losing money in the stock market if an individual keeps their money invested for one year?
Answers
It is estimated that both novice and experienced stock market investors alike lose up to 90% of their investment.
Why do 90% of traders experience a loss?Trading too much, not conducting enough research, averaging your holdings, and relying too heavily on recommendations are some common mistakes made by intraday traders. Many day traders have suffered losses as a result of these errors. 90% of intraday traders experience financial losses.
Why you ought to stop trading?You should stop trading right away if you find yourself in debt or unable to support your daily needs. This is a key indicator that it's time to stop trading. Unlike a job where you receive a defined salary each month, trading does not have a set reward.
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a. Explain the definition of interim payment.b. All contents in a contract describes rights and obligations of parties under the contract. Those contents can be in
Answers
a. Interim payment: Partial payment made during a project before its completion to cover ongoing expenses and maintain cash flow.
b. Contents in a contract: Provisions in a contract that outline the rights and obligations of the parties involved.
Interim payment refers to a partial payment made to a contractor or subcontractor during the course of a project. It ensures that the contractor has sufficient funds to cover expenses and maintain cash flow while the project is still ongoing. Interim payments are typically based on the progress or work completed at a specific stage of the project.
The contents of a contract include all the provisions and terms that define the rights and obligations of the parties entering into the contract. These provisions can cover various aspects such as scope of work, payment terms, delivery schedules, warranties, dispute resolution mechanisms, and other relevant contractual terms. The purpose of including these contents in a contract is to establish a clear understanding between the parties, ensure compliance with agreed-upon terms, and provide a legally binding framework for the execution of the contract.
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Using the marine corps planning process (mcpp) to produce an operations order (opord) is an example of which level of risk management?
Answers
Answer:
Deliberate level of risk management
Explanation:
Risk management can be defined as a process whereby situations or circumstances that can pose or cause risks to a firm or management operations is properly identified.
Risk management also involves taking appropriate measures to prevent such risks from occurring or taking place.
Risk management also involves controlling or mitigating against any for of risks that may occur in the future.
Risk management includes the following steps:
a) Identify the risks
b) Assess the risks
c) Make decisions
d) Place appropriate controls in place
e) Carry out adequate supervision.
Operational Risk Management has 3 levels and they are:
1) Deliberate Risk Management.
2) Time Critical Risk Management.
3) Strategic Risk Management.
In the question above, using the marine corps planning process (mcpp) to produce an operations order (opord) is an example of Deliberate level of risk management.
Deliberate level of risk management can be defined as the risk management level that is carried out or well executed amongst a group of personnels.
It is the level of risk management that is carried out when we are trying to execute or carry out a particular project.
Which of the following techniques helps a company learn more about its target market?
1. Market research
2. Publicity
3. Personal selling
4. Market segmentation
Answers
Answer:
Market research
Explanation:
everyone is excited about the new subdivision going in on the south end of the valley. it will have more than 400 new homes, a shopping center, a water park, and an extensive park system. people are so excited, in fact, that there is a long waiting list of people who want to buy into the community. according to arizona law, what must the association do when one of those waiting-list members states his intention to buy?
Answers
According to Arizona law, when a waiting-list member states their intention to buy in the new subdivision, the association must follow a specific process.
The specific process in the new subdivisionFirst, they need to provide the prospective buyer with detailed information about the community, including the rules and regulations, fees, and any other important documents. This ensures the buyer is fully informed about the community they are considering joining.
Next, the association should promptly update the waiting list, giving priority to the interested buyer based on their position in the list. They should also communicate with the buyer about the next steps, such as signing a purchase agreement and completing any required paperwork.
Lastly, the association should ensure that the buyer meets all eligibility requirements to join the community, such as financial stability and adherence to community guidelines.
By following these steps, the association will maintain a fair and orderly process for welcoming new residents into the exciting subdivision on the south end of the valley.
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Initiative means letting your boss define your tasks. true or false
Answers
The statement is false because initiative involves taking responsibility for one's own work and actively seeking out opportunities to contribute to the success of the organization.
Initiative is the ability to take action without being prompted or directed to do so. It involves recognizing opportunities for improvement or growth and taking proactive steps to make things happen. This means being self-directed, motivated, and willing to take risks in order to achieve a desired outcome.
When an employee shows initiative, they are demonstrating a willingness to take ownership of their work and actively seek out opportunities to contribute to the success of the organization. They are not simply waiting for someone else to tell them what to do or waiting for instructions to be given.
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Which quality term refers to the degree to which the product or service design specifications are met?
Answers
Conformance quality refers to the degree to which the product or service design specifications are met.
A product, service, or process's ability to adhere to design standards is known as quality of conformance. Design requirements are an interpretation of client requirements. However, if the person who generated the design specifications did not accurately grasp what the client desired, a product with high quality of conformity may still not be recognized by a consumer as being an acceptable product.
An sufficient tolerance range is used to measure the quality of conformance. For instance, if a flight's planned departure time is 10 minutes away, any departure that occurs within that window has a high grade of conformity, but those that occur at intervals of greater than 10 minutes do not. conformity to requirements within a reasonable tolerance range is considered to be of high quality of conformity.
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What is Ethical Leadership Competence?
A. Ability to handle all kinds of moral problems that may arise in an organization
B. Making difficult decisions
C. Ability to apply a System 1 thinking to resolving ethical dilemmas
D. Setting the proper tone at the top
Answers
Ethical leadership competence is essential for creating a culture of integrity and accountability in organizations. It requires a combination of knowledge, skills, and abilities, including the ability to handle moral problems, make difficult decisions, apply System 1 thinking, and set the proper tone at the top.
Ethical leadership competence refers to the ability of a leader to effectively manage ethical challenges and dilemmas in an organization. This involves the knowledge, skills, and abilities required to make decisions that align with ethical principles, values, and standards.
One important aspect of ethical leadership competence is the ability to handle all kinds of moral problems that may arise in an organization. This requires a deep understanding of ethical theories and frameworks, as well as the ability to apply them in real-world situations.
Another key component of ethical leadership competence is the ability to make difficult decisions. Ethical leaders must be willing to take a stand for what is right, even if it is not the popular or easy choice. This requires courage, integrity, and a commitment to ethical values.
Ethical leaders also need to be able to apply a System 1 thinking to resolving ethical dilemmas. System 1 thinking involves intuitive, fast, and automatic decision-making, which is often used in situations where time is limited or there is a high degree of uncertainty. Ethical leaders must be able to make quick decisions that are consistent with ethical principles and values.
Finally, ethical leadership competence involves setting the proper tone at the top. Leaders must model ethical behavior and create a culture of integrity and accountability within their organizations. This requires ongoing communication, training, and support for ethical decision-making at all levels of the organization.
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You click on a job and see that you have a “Connection” at that company. Brainstorm 1-2 steps you might want to take with this connection if you are interested in applying. Explain your reasoning.
Answers
Answer:
make a resume and get an application to apply
Explanation:
If any person are the applying, the job as the scene to the connection of the company as the add-on the reference as the on the resume.
What is job?
The term "job" refers to employment with a certain company. A job is also known as the amount of money that a corporation pays its employees. The employment has provided the opportunity to pursue a career. A job provides financial assistance as well as experience. There are four types of people: producers, builders, thinkers, and improvers.
A person is the need of the job. To search the job are the seen the connection of the company are with the help of the resume to take to apply as the lastly add-on the reference. The reference was the important in the resume to apply for the job are the easily to grab the opportunities.
As a result, a person is to apply for the job.
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What factors would the Marketing department need to consider when creating an advert❓❓❓
Answers
Answer:
1.weather
2.type of product
3.festival or period
4.means of advertising or communication
5.amout of consumers
6.markat value
Explanation:
hope it helps
For current, former, and potential customers, a ______ represents everything that a good, service, or idea means to them.A successful brand adds value to organizations in numerous ways, including through loyal customers and recognizable goods and services, both of which lead to more revenue for for-profit firms and more donations and support for nonprofit organizations.
Answers
For current, former, and potential customers, a brand represents everything that a good, service, or idea means to them.
A successful brand adds value to organizations in numerous ways, including through loyal customers and recognizable goods and services.
Both of which lead to more revenue for for-profit firms and more donations and support for nonprofit organizations.
What is Brand?
A brand is a term, symbol, design, or combination of these elements that identify and differentiate a good or service from other goods and services.
It includes not just the brand name and logo, but also the company's reputation, quality, and performance history.
A brand is the customer's overall understanding of a product or service based on the experience and satisfaction they've had with it. The brand represents the promise a company makes to its consumers about the benefits they can expect to receive from using its products or services.
Hence, for current, former, and potential customers, a brand represents everything that a good, service, or idea means to them.
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According to the video, what are some decisions that Architects make? Select four options.
how much money a building will be worth when finished
what traffic patterns people will follow
how people will feel when they enter or leave a building
how many laborers are needed for a project
where to put doors, walls, and windows
what building materials to use
which people will be allowed to enter a building
Answers
The decisions that Architects make include:
how much money a building will be worth when finished.how people will feel when they enter or leave a building.where to put doors, walls, and windows.what building materials to use.Who is an architect?It should be noted that an architect simply means an individual who plans, designs and also oversees the construction of a building.
In this case, some of the decisions that Architects make include how much money a building will be worth when finished, how people will feel when they enter or leave a building, etc.
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Answer:
above answer is wrong
Explanation:
Explain the term strategic dependence. what kind of markets would we expect to find it in? How will it affect the behavior of firms in these markets?
Answers
The Strategic Dependence (SD) model offers a purposeful representation of a process in terms of a network of actor-to-actor dependency interactions.
What is strategic dependence?A circumstance in which one or more other businesses in the industry may strategically counteract the actions of one firm with regard to price, quality, advertising, and related developments.
Only when an industry has a small number of significant enterprises can there be such dependence. The firms are the players in an oligopoly, and their rewards are their earnings.
Each player is required to select a strategy, which is a blueprint outlining how they would behave or move in certain circumstances.
By considering how much these basic interests are impacted, strategic dependencies can be found. Only on a case-by-case basis, taking into account both qualitative and quantitative factors, ecosystem-specific details, and professional experience, is this possible.
The price reduction may have strategic advantages, such as increasing market share or preventing entry, but there is a risk that competitors will simply do the same. Although there may be little to no increase, this can result in declining sales and profitability.
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When an account payable is paid off in full, an entry is journalized that credits
which account?
O A. Accounts Payable
B. Accounts Receivable
C. Cash
D. Income
Answers
Answer:
B
Explanation:
What is it called when a business contributes money, goods or services to an organization or event to gain the publicity related
A news release
B customer loyalty program
C sponsorship
D promotional tie-in
Answers
Refer to the table below What is the marginal cost of producing the 200th pizza? Quantity Marginal Product of Labor 200 450 550 600 625 640 Total Cost of Pizzas $800 1,450 2,100 2,750 3 400 100 50 25 O A. $3 25 OB-S000 O c. $260 O D. $650.00
Answers
Marginal cost of producing the 200th pizza is $650.00
Based on the information provided in the table, we can see that the total cost of producing the 200th pizza is $2,100 and the total cost of producing the 199th pizza is $1,450. Therefore, the marginal cost of producing the 200th pizza is:
Marginal Cost = (Total Cost of Producing 200th Pizza - Total Cost of Producing 199th Pizza) / (Quantity of 200th Pizza Quantity of 199th Pizza) Marginal Cost = ($2,100 - $1,450) / (200 - 199) Marginal Cost = $650.00 Therefore, the answer is D. $650.00. Marginal cost is the additional cost incurred by a company or producer for producing one additional unit of a good or service. It is calculated by dividing the change in total cost by the change in quantity produced. In other words, it is the cost of producing one more unit of a good or service
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If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget?
Answers
If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget is: Cost Of Attendance .
What is financial aid?Financial aid can be defined as the financial assistant or grant render to student which can help to cover their tuition and other expenses.
On the other hand Cost Of Attendance can be defined as the overall expenses amount that you will have to incur.
This expenses include the following:
Loan feesTuition feeRoom and boardBooksTransportation etcTherefore If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget is: Cost Of Attendance .
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Answer:
If a school is offering a lot in financial aid, what else you need to consider when trying to determine if a school will fit your budget is the Cost Of Attendance.
If a school is offering a lot in financial aid, you need to consider the cost of attendance (COA) when determining if a school will fit your budget. Financial aid letters from institutes of higher education only include aid for one year. You must reapply for financial aid every year.
depessed need someone to help me through a war
Answers
Answer:
Find the happy things in life :)
Answer:
what kind of war should i help you with ?
Terrell has $300 to open a checking account. He plans to use the ATM four times per month at his local branch. He does not overdraft his account.
Answers
Answer:
Terrell needs a checking account that offers him either no fees at all for ATM withdrawals at the local branch, or that offers him the lowest fees in the market.
The reason is that Terrell will open his account with a relatively small amount of $300, and he plans to make 4 withdrawals in total. Given the small balance and the quantity of withdrawals, a high fee could easily represent an important percentage of the total balance, making him lose money, essentially.
Answer:
B
Explanation:
Cecil gives goods on consignment to Jerry who agrees to try to sell them for a 20% commission. At the end of the accounting period, which of the following parties includes the consigned goods in its inventory?
(A) Cecil
(B) Jerry
(C) Both Cecil and Jerry
(D) Neither Cecil nor Jerry
Answers
Jerry accepts Cecil's cargo of products and promises to try to sell them in exchange for a 20% commission. The consigned products are the conclusion of the accounting period by both Cecil and Jerry parties.
A commission is a fee that a broker or investment advisor charges in exchange for handling a client's securities purchases and sales or offering financial advice.
Commissions and fees differ significantly from one another, at least in the context of professional advisors in the financial services sector. Sales of financial products like mutual funds and annuities, as well as dealing with client funds, are how commission-based advisors and brokers generate income.
The cost of managing a client's money by a fee-based advisor is fixed. This could be a monetary sum or a proportion of the assets under management (AUM). Sales made inside a family are frequently uncommissioned gifts of equity.
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Arrange the following revenues in the federal government, from greatest to
least.
Drag each item to put them in the correct order.
(2 points)
= excise taxes
= Social Security and Medicare taxes
= corporate income taxes
= individual income taxes
= customs duties
= miscellaneous revenue
Answers
Social Security and Medicare taxes
Corporate income taxes
Excise taxes
Custom duties
miscellaneous revenue
fob destination means that goods are owned by the buyer as soon as ______ . multiple choice question. a. they arrive at the buyer's place of business b. they leave the seller's place of business the sales c. contract is signed
Answers
FOB destination means that the goods are owned by the buyer once they arrive at the buyer's place of business. Option a is correct.
What is FOB destination?Corresponds to the term Free on Board which corresponds to a term of shipment which is the specification of ownership the responsibility for the goods is transferred from the seller to the buyer.
Therefore, at the FOB destination, the seller retains ownership and responsibility for the goods until they are delivered to the location specified by the buyer.
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Q2. 90% of flights depart on time. 80% of flights arrive on time. 75% of flights depart on time and arrive on time. Are the events, departing on time and arriving on time, independent?
Answers
Answer:
Events departing on time and arriving on time are NOT independent.
Explanation:
If two events A and B are independent, then
P(A and B) = P(A) * P(B)
Here
A = flights depart on time
B = flights arrive on time
P(A) = 0.90
P(B) = 0.80
If A and B are independent, then
P(A and B) = P(A) * P(B) = 0.9 * 0.8 = 0.72
Since
the observed value of P(A and B) is 0.75,
assuming that there are no observation errors, we conclude that the two events A and B are not independent.