Problem

For \(\text{residual}~=~\text{observed}~-~\text{predicted}\), classify \(\text{residual}~+2\) relative to reference value \(100\). Calculate \(|\text{residual}|/\text{reference}\), interpret the residual direction, and apply: small at most \(5\%\), large at least \(20\%\), otherwise moderate.

Big Picture

What this problem is really about

Residual sign and residual size answer different questions. Use the sign to identify underprediction or overprediction, but judge size with the absolute residual divided by the supplied reference scale; only then compare the percentage with the stated classification bands.

Answer choices

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Preview only

direction=underpredicted by2; relative error=2/100=2%; test=2%≤5%; classification=small

direction=neither under nor over because residual is positive; relative error=2/100=2%; test=2%≤5%; classification=neither

direction=underpredicted by2; relative error=2/2=100%; test=100%≥20%; classification=large because2 is compared with0 rather than100

direction=underpredicted by2; relative error=2/100=2%; test=2%≥20%; classification=large

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For \(\text{residual}~=~\text{observed}~-~\text{predicted}\), classify \(\text{residual}~+2\) relative to reference value \(100\). Calculate \(|\text{residual}|/\text{reference}\), interpret the residual direction, and apply: small at most \(5\%\), large at least \(20\%\), otherwise moderate.

What this problem is really about

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