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Commerce · Q454

Costing

Graduate and Post Graduate · Commerce · question 454

Q454

In Regression Analysis, if an observed cost value is 85 and disturbance error is 25 then predicted cost value will be

A.
110
B.
125
C.
60
Answer
D.
70

Answer: Option C

Solution

Answer: Option C
Solution:
Predicted cost = Observed cost value - Disturbance error
= 85 - 25 = 60