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In regression analysis if observed cost value is 50 and predicted...

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In regression analysis, if observed cost value is 50 and predicted cost value is 7, then disturbance term will be

Answer & Solution
Correct Answer: Option B
In regression analysis, if observed cost value is 50 and predicted cost value is 7, then disturbance term will be 43.
Disturbance term = Observed cost value - Predicted cost value
= 50 - 7 = 43.
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