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The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below.
A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2) .
-Refer to Exhibit 10.1. How would you compute the centroids for the two (2) groups?
Reserve Requirement
A regulation set by central banks requiring commercial banks to hold a certain amount of their deposits as reserves, either as cash in their vaults or as deposits with the central bank, to ensure liquidity.
Money Multiplier
The ratio of the increase in total money supply generated from an initial deposit in a banking system.
Compliance
The act of conforming to or following rules, regulations, standards, or laws.
Reserves
Funds or assets set aside to meet future liabilities, unexpected costs, or potential financial obligations.
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