Exhibit 10.2 the Following Questions Are Based on the Problem Description and Description

question 54

Multiple Choice

Exhibit 10.2
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 (Group 1) , marginally successful (Group 2) or not-successful (Group 3) in their graduate studies. The officer has data on 20 current students, 7 successful (Group 1) , 6 marginally successful (Group 2) and 7 not successful (Group 3) . ​ ​ ​ ​
-Refer to Exhibit 10.2. What is the verbal test score value of the group centroid for group 1?

• A) 697.71
• B) 647.86
• C) 587.67
• D) 650.43

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Definitions:

Volume Variance

A financial metric that measures the difference between the actual volume of production and the expected (or budgeted) volume, which can affect costs.

Denominator Level

The quantity or level used in cost accounting as a divisor to allocate fixed costs among units of output, helping in understanding per unit costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products or job orders, calculated based on estimated costs and activity levels before the period begins.

Variable Overhead

Costs that fluctuate with the level of production activity, such as utilities for the manufacturing plant or commissions for sales staff.