Exhibit 10.1 the Following Questions Are Based on the Problem Description and Description

question 39

Multiple Choice

Exhibit 10.1
The following questions are based on the problem description and the output 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. What percentage of the observations is classified incorrectly?

• A) 90%
• B) 80%
• C) 85%
• D) 15%

Calculate Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC) from given data.

Differentiate between fixed and variable costs with examples.

Understand economic decision-making regarding operation, shutdown, staying in business, or going out of business in the short and long run.

Analyze the impact of economies of scale on production efficiency.

---

Definitions:

Net Income

A company's overall income after deducting all expenses and taxation from gross revenue.

Accumulated Depreciation

The total depreciation amount that has been charged to expense a fixed asset over its useful life to reflect wear and tear, aging, or obsolescence.

Operating Activities

Day-to-day actions and transactions that are central to the primary business operations, including revenue and expense activities.

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to arrive at operating cash flow.