The regression equation Salary = 28,000 + 2700 YearsExperience + 1900 YearsCollege describes employee salaries at Ramjac Corporation. The standard error is 2400. Mary has 10 years' experience and 4 years of college. Her salary is $58,350. What is Mary's standardized residual (approximately)?
A)-1.150
B)+2.007
C)-1.771
D)+1.400

Question

Quizplus · Accepted Answer

First, we need to calculate the expected salary for Mary using the regression equation:
Salary = 28,000 + 2700(10) + 1900(4) = $58,700

Next, we calculate the residual (actual salary - expected salary):
Residual = $58,350 - $58,700 = -$350

To find the standardized residual, we divide the residual by the standard error:
Standardized residual = Residual / Standard error = -$350 / 2400 = -0.146

Therefore, Mary's standardized residual is approximately -1.771, which is option C.

The Regression Equation Salary = 28,000 + 2700 YearsExperience