Which of the following is not true with respect to the residuals in a least squares linear
regression?
1. The expected value of the residuals is 0.
2. If the residuals are larger for large values of x and smaller for small values of x then the
model is an adequate representation of the linear relationship between x and y.
3. The value of the residual is negative when the observed value of y is smaller than the
predicted value
Solution
ans) 2. If the residuals are larger for large values of x and smaller for small values
of x then the model is an adequate representation of the linear relationship between x and y. If
the model is an adequate fit, then the residual values do not get larger as the x values get larger.
The residual value is larger only if the predicted outcome is further away from the observed
outcome..
Which of the following is often not a disadvantage of decentralizati.pdf
1. Which of the following is often not a disadvantage of decentralization?a. Lack of coordination
and communication between segments.b. Higher training costs for lower-level managers.c.
Lack of company focus as lower-level managers may make decisions that benefit their own
particular segment.d. Decreased job satisfaction for lower-level managers.
Solution
b.higher training cost for lower level managers
