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:

Deferred Compensation

A portion of an employee's income that is deferred to a later date, typically to take advantage of lower tax rates or to fund retirement plans.

Pension Expense

The cost recognized by an employer for providing retirement benefits to employees during a given period.

Straight-Line Method

A depreciation technique that allocates an equal amount of the cost of an asset minus its salvage value to each accounting period over its useful life.