Consider the Following Proposed Determining Function for a Student's Grade

question 31

Multiple Choice

Consider the following proposed determining function for a student's grade on the econometrics final, FinalGrade_i = 68 + 4 HoursStudied_i - 0.5 Num Other Finals_i² + U_i, where hours studied is the number of hours studied during finals week by student i, and number of other finals squared is the number of other finals student i has during finals week squared. Derive the formula for the change in a student's final grade with respect to a unit change in the number of other finals the student has in finals week.

• A) Final Grade decreases by 0.5.
• B) Final Grade increases by 4.
• C) Final Grade increases by 0.5 × (Num Other Finals).
• D) Final Grade decreases by Num Other Finals.

---

Definitions:

Bond Interest Expense

The cost incurred by an issuer of bonds due to the interest it must pay to bondholders over the life of the bond.

Carrying Value

The book value of assets and liabilities as reported on the balance sheet, considering depreciation, amortization, or impairment.

Future Sacrifice

An expectation to forgo benefits in the future due to current investment or decisions.

Economic Benefit

An increase in the value of an asset or a reduction in liabilities, contributing to an improvement in the financial position of an entity.