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Commerce · Q436

Costing

Graduate and Post Graduate · Commerce · question 436

Q436

In regression analysis, if observed cost value is 62 and predicted cost value is 29, then disturbance term would be

A.
33
Answer
B.
91
C.
81
D.
43

Answer: Option A

Solution

Answer: Option A
Solution:
Disturbance term = Observed cost value ÷ Predicted cost value
= 62 - 29 = 33
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