Composite error is the error that occurs due to _____.
A)the incorrect measurement of explanatory variables
B)the inclusion of too many explanatory variables in the model
C)correlation between the independent variables
D)unobserved factors affecting a dependent variable

Question

Quizplus · Accepted Answer

Composite error is also known as residual error, which is the difference between the actual and predicted values of the dependent variable. It is caused by unobserved factors affecting the dependent variable that are not captured by the explanatory variables included in the model.

Composite Error Is the Error That Occurs Due to _____