For Projects That Are New and Have High Risk, the Contractor

question 45

True/False

For projects that are new and have high risk, the contractor should include larger amounts of contingency.

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Definitions:

Residual

The difference between an observed value and the predicted value in a statistical model.

Observed Value

The actual value measured or recorded during an experiment or observation.

Residual Plot

Graphical representation of the residuals that can be used to determine whether the assumptions made about the regression model appear to be valid.

Regression Model

A statistical model that estimates the relationship between a dependent variable and one or more independent variables, often used for prediction and forecasting.