An assumption of specification analysis, which states all the values of residuals which are uniformly scattered around regression line is classified as __________?
Correct answer: C. normality of residuals
- A. abnormality of residuals
- B. normality of regression
- C. normality of residuals
- D. abnormality of regression
Explanation
Normality of residuals means the errors are distributed around the regression line in a regular pattern, usually centered around zero. The other choices incorrectly describe abnormal residuals or the regression line itself.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The relationship between cost and cost drivers is _________?
The range in which relationship exists between level of activity or total cost is called ___________?
A helpful technique, for accurate forecasts about costs to be incurred in future is a part of ___________?
A technique for estimating regression line, which minimizes the sum of vertical deviations squares is classified as __________?
The weak relationship between cost and cost driver is indicated on a regression line, which is ___________?
Which one of the following is the main advantage of quantitative method?