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In regression analysis if predicted cost value is 65 and observed...

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Costing
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In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be

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Correct Answer: Option A
In regression analysis, if predicted cost value is 65 and observed cost value is 19 then disturbance term will be 46.
Disturbance term cost = Predicted cost value - Observed cost value
= 65 - 19 = 46.
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