When a Manager Notices an Outlier During the Cost Estimation

question 90

Multiple Choice

When a manager notices an outlier during the cost estimation process, the appropriate response is to:

• A) no response is required, unless multiple outliers are observed.
• B) attempt to identify the reasons for the outlier.
• C) divide the outlier by the standard deviation, before including the outlier in the regression model
• D) re-collect all the data, as an outlier indicates that the data has been corrupted.

---

Definitions:

Cognitive Component

The aspect of attitude that encompasses beliefs and thoughts about an object, situation, or individual.

Beliefs, Opinions

Personal convictions or viewpoints held by an individual or group, often influencing behavior and decision-making.

Predispositions to Respond

Innate or acquired tendencies in individuals to react in certain ways under specific conditions or stimuli.

Emotional Dissonance

Inconsistency between emotions we feel and those we try to project.