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Commerce · Q395

Costing

Graduate and Post Graduate · Commerce · question 395

Q395

An assumption of specification analysis, which states all values of residuals which are uniformly scattered around regression line is classified as

A.
abnormality of residuals
B.
normality of regression
C.
normality of residuals
Answer
D.
abnormality of regression

Answer: Option C

Solution

Answer: Option C
Solution:
An assumption of specification analysis, which states all values of residuals which are uniformly scattered around regression line is classified as normality of residuals. Residuals are the differences between the observed and predicted.