A test is conducted in 22 cities to see if giving away free transit system maps will increase the number of bus riders.In a regression analysis,the dependent variable Y is the increase in bus riders (in thousands of persons)from the start of the test until its conclusion.The independent variables are X1 = the number (in thousands)of free maps distributed and a binary variable X2 = 1 if the city has free downtown parking,0 otherwise.The estimated regression equation is Y = 1.32 + 0.0345X1 − 1.45X2.In city 3,the observed Y value is 7.3,X1 = 140,and X2 = 0.The residual for city 3 (in thousands)is
A)6.15
B)1.15
C)4.83
D)1.57

Question

Quizplus · Accepted Answer

The predicted Y value for city 3 is calculated as 1.32 + 0.0345(140) - 1.45(0) = 6.15. The residual is the observed Y value minus the predicted Y value: 7.3 - 6.15 = 1.15.

A Test Is Conducted in 22 Cities to See If