Question

GNP=-11093.17-140.74(birth rate)+317.74(life expectancy female)

-In a certain country, the birth rate is 29 live births per thousand in the population and the female life expectancy is 61. What is the predicted GNP for this country?

-Suppose the country in number 3 had an observed GNP of 5117. Calculate the residual for this country.

Answer 1

Given regression equation is,

GNP=-11093.17-140.74(birth rate)+317.74(life expectancy female)

We want to predict GNP for birth rate = 29 and female life expectancy = 61

GNP = -11093.17 - (140.74 * 29) + (317.74 * 61)

=> GNP = -11093.17 - 4081.46 + 19382.14

=> GNP = 4207.51

Therefore, predicted GNP for this country is 4207.51

Suppose the country in number 3 had an observed GNP of 5117

Then residual for this country is,

Residual = Observed GNP - Predicted GNP

=> Residual = 5117 - 4207.51

=> Residual = 909.49