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

question 47

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 correctly?

• A) 90%
• B) 80%
• C) 85%
• D) 100%

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Definitions:

Direct Materials Inventory

The total cost of raw materials that are directly involved in the manufacturing of a product and are currently held in inventory.

Labour Rate Variance

A financial metric that measures the difference between the actual cost of labor and the expected (or standard) cost.

Labour Efficiency Variance

Labour efficiency variance is the difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, used to assess workforce performance.

Standard Labour Rate

A predetermined rate of pay established for work performed, used in budgeting and costing calculations.