Question

- Suppose that a least squares regression line equation is ˆ
*y*= 1*.*65 − 2*.*20*x*and the actual*y*value corresponding to*x*= 10 is −19, what is the residual value corresponding to*y*= −19?

Step 1

*Residual value:*

The difference between the calculated value and predicted value of a dependent variable is defined as the residual value. Let *e* be the difference between the predicted value(y^{^}) and the observed value (y), then the residual value is,

e = y – y^{^}

Step 2

**Computing the residual value:**

Here, the least square regression equation is y^ = 1.65 – 2.20x.

The value of y^ at x=10 is obtained as shown below:

y^ = 1.65 – 2.20(10) = –20.35.

At x=10 the y-value is –...

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