A deviation from standard because of an inaccurate estimation of the amounts for variables used in the standard-setting process is an example of a(n):
A) Random error.
B) Prediction error.
C) Implementation error.
D) Modeling error.
E) Measurement error.

Question

Quizplus · Accepted Answer

Prediction error occurs when the estimates or forecasts used in setting standards are inaccurate, leading to deviations from the expected outcomes.

A Deviation from Standard Because of an Inaccurate Estimation of the Amounts