{"id":45242,"date":"2024-04-15T21:55:14","date_gmt":"2024-04-15T21:55:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45242"},"modified":"2024-04-15T21:55:14","modified_gmt":"2024-04-15T21:55:14","slug":"in-regression-analysis-if-predicted-cost-value-is-65-and-observed-cost-value-is-19-then-disturbance-term-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-regression-analysis-if-predicted-cost-value-is-65-and-observed-cost-value-is-19-then-disturbance-term-will-be\/","title":{"rendered":"In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;46&#8243; option2=&#8221;56&#8243; option3=&#8221;36&#8243; option4=&#8221;76&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 46.<\/p>\n<p>The disturbance term is the difference between the observed value and the predicted value. In this case, the observed value is 19 and the predicted value is 65, so the disturbance term is 46.<\/p>\n<p>The disturbance term is also known as the error term or the residual. It is a random variable that represents the unobserved factors that affect the dependent variable. The disturbance term is assumed to be normally distributed with a mean of 0 and a constant variance.<\/p>\n<p>The disturbance term is important because it allows us to make inferences about the relationship between the independent and dependent variables. If the disturbance term is not normally distributed or has a non-constant variance, then the inferences that we make about the relationship between the independent and dependent variables may not be accurate.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: 46. This is the correct answer. It is the difference between the observed value and the predicted value.<\/li>\n<li>Option B: 56. This is the sum of the observed value and the predicted value. It is not the disturbance term.<\/li>\n<li>Option C: 36. This is the difference between the predicted value and the mean of the observed values. It is not the disturbance term.<\/li>\n<li>Option D: 76. This is the sum of the observed value and the mean of the observed values. It is not the disturbance term.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;46&#8243; option2=&#8221;56&#8243; option3=&#8221;36&#8243; option4=&#8221;76&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-45242","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-regression-analysis-if-predicted-cost-value-is-65-and-observed-cost-value-is-19-then-disturbance-term-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;46&#8243; 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