Cars from an online service were examined to see how fuel efficiency (highway mpg) relates to cost (in dollars). According to the regression equation, a used car that costs $13,000 is predicted to get about 30.24 miles per gallon. According to the data, the car got 35 miles per gallon. What is the value of the residual for this car?

Question

Business

Araceli Duke

30 May, 07:40

Cars from an online service were examined to see how fuel efficiency (highway mpg) relates to cost (in dollars). According to the regression equation, a used car that costs $13,000 is predicted to get about 30.24 miles per gallon. According to the data, the car got 35 miles per gallon. What is the value of the residual for this car?

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Answers (1)

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Coby · Answer 1

The correct answer is 4.76.

Explanation:

According to the scenario, the computation of the given data are as follows:

Actual value = 35 Miles

Predicted value = 30.24 Miles

So, we can calculate the residual value of the car by using following formula:

Residual Value = Actual Value - predicted value from independent variables

By putting the value in the formula, we get

Residual value = 35 - 30.24

= 4.76