Goodness-of-fit measures how well the predicted values in a cost estimating equation:
A)determine the level of activity.
B)match the actual cost observations.
C)rely on the independent variable.
D)match the cost driver.

Question

Quizplus · Accepted Answer

Goodness-of-fit measures the extent to which the predicted values in a cost estimating equation match the actual cost observations. It provides an indication of how well the model fits the data set and the degree of reliability of the estimation.

Goodness-Of-Fit Measures How Well the Predicted Values in a Cost