Problem

Classify \(\text{residual}~+25\) relative to reference value \(50\), the midpoint of the usual \(40\text{--}60\) scale. Calculate the relative error, interpret direction using \(\text{residual}~=~\text{observed}~-~\text{predicted}\), and apply: small at most \(5\%\), large at least \(20\%\), otherwise moderate.

Answer choices

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direction=underpredicted by25; relative error=25/50=50%; test=25<50 is treated as small; classification=small

direction=underpredicted by25; relative error=25/50=50%; test=50%≤5%; classification=small

direction=underpredicted by25; relative error=25/50=50%; test=50%≥20%; classification=large

direction=neither under nor over because residual is positive; relative error=25/50=50%; test=50%≥20%; classification=neither

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