Question

A residual can be computed by subtracting the actual minus the predicted. If we observe the following: y^ = .65x1 + 30 given observed point (2, 36) the residual value is:

	A.	36 ‍
	B.	3.6‍
	C.	4.7‍
	D.	31.3‍

Answer 1

Solution:

Residual is computed by subtracting the predicted value from the actual value.

The regression equation is,

Observed point is (2, 36).

i.e. Actual value of y at x_{​​​​​​1} = 2 is 36.

Now predicted value of y at x_{​​​​​​1} = 2 is,

Predicted value of y at x = 2 is 31.30

Residual = Actual value - Predicted value

Residual = 36 - 31.30

Residual = 4.7

Residual value is 4.7

Hence, option (C) is correct.

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