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Relationship between cost and cost driver is economically plausible if goodness of fit
Answer & Solution
Correct Answer:
Option
A
Relationship between cost and cost driver is economically plausible if goodness of fit has meaning. The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal distribution. In other words, it tells you if your sample data represents the data you would expect to find in the actual population.
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