When Using Midterm Exam Scores to Predict a Student's Final

question 6

Multiple Choice

When using midterm exam scores to predict a student's final grade in a class, the student Would prefer to have a

• A)negative residual, because that means the student's final grade is lower than we would predict with the model.
• B)residual equal to zero, because that means the student's final grade is exactly what we would predict with the model.
• C)positive residual, because that means the student's final grade is lower than we would predict with the model.
• D)positive residual, because that means the student's final grade is higher than we would predict with the model.
• E)negative residual, because that means the students final grade is higher than we would predict with the model.

---

Definitions:

Actual Overhead

The real costs incurred from indirect expenses such as utilities, rent, and administrative salaries in the production process.

Applied Overhead

An estimate of manufacturing overhead costs allocated to individual units of production.

Factory Overhead Account

An account used to accumulate all indirect costs associated with the production process, including indirect labor, materials, and other manufacturing overheads.

Actual Overhead Cost

The real expenses incurred for overhead in a given period, which may differ from budgeted or standard costs.