Question

t/f 20. A residual is the difference between the actual y value and the predicted y value.

t/f 21. Extrapolation is risky because we have not established a linear relationship in this area of our scatter diagram.

t/f 22. As a general rule, when making predictions using multiple regression, the more x variables you add to the equation the better the prediction.

Answer 1

20. Yes, the difference between the actual y value and the predicted y value is called the residual.

Answer : true

21. Extrapolation is risky because we have not established a linear relationship in this area of our scatter diagram. Yes, this is because regression prediction estimates are relevant only in the range of the x variable. The relationship might change outside that range.

Answer : true

22. The more significant variables we add to the equation, better the prediction. Adding more insignificant variables does not make the prediction better.

Answer : False