The following regression model has been computed based on a sample of fifty observations of part- time workers in which the individual weekly income was the dependent variable and hours worked is the independent variable : = 43.2 + 25.2x. The first observations in the sample for y and x were 350 and 15, respectively. Given this, the residual value for the first observation is approximately 71.2.

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The predicted value for the first observation is 43.2 + 25.2(15) = 421.2. The residual is the actual value minus the predicted value: 350 - 421.2 = -71.2. The absolute value of the residual is approximately 71.2.

The Following Regression Model Has Been Computed Based on a Sample