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

question 27

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 formula is entered in cell E4 and copied to cells E5:E25 of the spreadsheet?

• A) = 7.452402 + 0.00694*C4 + 0.00232*D4
• B) = 7.452402 − 0.00694*C4 − 0.00232*D4
• C) = 1.157926 + 0.001545*C4 + 0.01297*D4
• D) = 7.452402 − 0.00694*D4 − 0.00232*C4

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Definitions:

Net Income Determination

The process of calculating the net income of a business by subtracting total expenses from total revenues.

Accrual Accounting

A financial reporting strategy that recognizes income and expenditures at the time they are earned or incurred, without regard to the actual movement of cash.

Operating Cash

refers to the cash that a business generates from its normal operating activities, crucial for maintaining day-to-day operations.

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards used for financial reporting in the U.S.