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

question 18

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. Suppose that for a given observation, the difference between Mahalanobis distances between group 1 and 2 (G1-G2) is small. This means that

• A) The observation is likely to be classified incorrectly
• B) The observation is likely to be classified correctly
• C) The observation is unlikely to be classified
• D) The observation should be deleted from the data set

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Definitions:

George Bush

Refers to either the 41st President of the United States, George H. W. Bush (1989-1993), or his son, the 43rd President, George W. Bush (2001-2009).

Recession

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, income, employment, manufacturing, and retail sales.

Excess Reserves

The amount of reserves that a bank holds beyond the minimum required by regulation or central bank policy.

Decrease Deposits

A reduction in the amount of funds deposited in banks or financial institutions, often indicating a shift in savings or investment strategies.