I did a little experiment on one of my MG-1s and I think I've figured out what the varible resistor does; but I may be wrong also. I stepped out on my side porch with a hand held sekonic meter, set the ASA to 400, pointed at the area which is part sun and part shade, centered the needle and the proper shutter speed should have been 1/60 sec. Well within the limits for a hand held shot. I then removed the little black cover on the back on my MG-1, set the film speed to 400, pointed it at the same scene and the yellow arrow came on, leading me to believe that the camera had selected a shutter speed of perhaps 1/30 sec. or less and required a larger F stop, perhaps F11. With a jewler's screwdriver I moved the varible resistor counter clockwise a bit and the yellow arrow went out. I tried it again using the same procedure and the yellow light didn't come on.
I took my other MG-1 out and at 400/F16 the yellow light came on that one too, but moving the varible resistor a bit counter clockwise turned that yellow arrow off as well. I'm therefore assuming, correctly I hope, that the shutter speed at F16 moved up a bit, at least over 1/30, perhaps 1/60, which the hand held Sekonic lightmeter indicated, therefore making it possible to hand hold the shot at F16 rather than F11 or F8.
I may be wrong and this may just be a coincidence, I don't know, but the proof will require shooting some 400 film in both cameras at F16 and see what happens. I may take one of my 35s, set it to 400 aim at the same scene and see what the shutter speed comes out to. Perhaps a bit more testing will either confirm or dispell this experiment.