Which of the Following Categories of Modeling Techniques Includes Discriminant

question 4

Multiple Choice

Which of the following categories of modeling techniques includes discriminant analysis?

• A)Biased models.
• B)Descriptive models.
• C)Predictive models.
• D)Prescriptive models.

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Definitions:

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, contributing to covering fixed costs and generating profit.

Variable Cost

A cost that varies directly with the level of production or sales volume.

High-low Method

A method applied in cost accounting that calculates fixed and variable expenses by analyzing the maximum and minimum activity levels.

Variable Component

The portion of cost or expense that varies directly with changes in output or activity level.