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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. Suppose that for a given observation, the difference between Mahalanobis distances between group 1 and 2 (G1-G2) is big and positive. This means that
Demand
The desire of purchasers to buy goods or services at a given price, which, combined with supply, determines market prices.
Defect
A flaw or imperfection in a product or system that can lead to its malfunction or inadequacy under expected conditions.
Notice
Formal information or warning about something given to a person or group.
Facts
Objective realities or pieces of information that are proven to be true through evidence.
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