The following regression model has been computed based on a sample of twenty observations: = 34.2 + 19.3x.The first observations in the sample for y and x were 300 and 18,respectively.Given this,the residual value for the first observation is approximately 81.6.

Question

The following regression model has been computed based on a sample of twenty observations:  = 34.2 + 19.3x.The first observations in the sample for y and x were 300 and 18,respectively.Given this,the residual value for the first observation is approximately 81.6.

Quizplus · Accepted Answer

The residual value for the first observation can be calculated as follows:
y - ŷ = 300 - (34.2 + 19.3(18)) = 300 - 372.6 = -72.6
Therefore, the residual value is -72.6, not 81.6. The statement is false.

The Following Regression Model Has Been Computed Based on a Sample