Costing - Study Mode
[#1161] A technique which minimizes sum of squared vertical difference, to determine regression line is considered as
Correct Answer
(C) least square technique
Explanation
Solution: A technique which minimizes sum of squared vertical difference, to determine regression line is considered as least square technique. The least squares method is a form of mathematical regression analysis that finds the line of best fit for a set of data, providing a visual demonstration of the relationship between the data points.
[#1162] In Regression Analysis, if an observed cost value is 85 and disturbance error is 25 then predicted cost value will be
Correct Answer
(C) 60
Explanation
Solution: Predicted cost = Observed cost value - Disturbance error = 85 - 25 = 60
[#1163] Better fit between estimated cost and actual observations is represented by
Correct Answer
(B) smaller residual terms
Explanation
Solution: Better fit between estimated cost and actual observations is represented by smaller residual terms.
[#1164] If an unexplained variation is 456870 and total variation is 955000, then coefficient of determination will be
Correct Answer
(B) 0.4783
Explanation
Solution: Coefficient of determination = Unexplained variation ÷ Total variation = 456870 ÷ 955000 = 0.4783
[#1165] In Regression Analysis, testing of assumptions if these are true or not is classified as
Correct Answer
(C) significance analysis
Explanation
Solution: Regression Analysis: In regression analysis, we often make certain assumptions about the data and the relationship between variables. Testing Assumptions: Testing whether these assumptions hold true involves various statistical tests and procedures. Significance Analysis: One of the key aspects of this process is significance analysis , where we assess the statistical significance of the regression coefficients and other parameters to determine if the relationships observed in the data are meaningful. Other Options: Weighted analysis and average analysis do not specifically pertain to the testing of assumptions in regression. Specification analysis involves checking if the model is correctly specified, but it is not the primary term used for testing assumptions. Therefore, the correct term for testing the assumptions in regression analysis is significance analysis .