Exhibit 10.6 The Information Below Is Used for the Following Questions

question 63

Multiple Choice

Exhibit 10.6
The information below is used for the following questions.
An investor wants to classify companies as being either a good investment, Group 1, or a poor investment, Group 2. He has gathered Liquidity, Profitability and Activity data on 18 companies he has invested in and run a regression analysis. Discriminant Analysis output has also been generated. The data for the problem and the relevant output are shown below. ​ ​ ​ ​ ​ ​
-Refer to Exhibit 10.6. Based on the 20 observations, what percentage of the observations are correctly classified?

• A) 80.00%
• B) 88.89%
• C) 75.25%
• D) 95.14%

---

Definitions:

Social Agent

An individual or entity that interacts with other members of society, influencing and being influenced by social structures and processes.

Gender Related

Concerns, behaviors, or norms associated with being male or female in a particular cultural or societal context.

Social Development

The process by which individuals learn and adapt behaviors that are necessary for integrating into society and social groups.

Socially Interdependent

Relying on others and being relied upon in social relationships, indicating a mutual dependence between individuals in a society.