Algebra 1

The director of marketing at a large company wants to determine if the amount of money spent on internet marketing is a good predictor of company profit. She fits a least-squares regression line to 20 months of data and computes the following regression line:

Profit = 372.6 + 17.2 (advertising dollars)

What is the value of the residual for advertising dollars spent equal to $1,020 and Profit equal to $17,500? Round to the nearest integer.

Question

Mathematics

Griffin Larson

7 March, 15:52

Algebra 1

The director of marketing at a large company wants to determine if the amount of money spent on internet marketing is a good predictor of company profit. She fits a least-squares regression line to 20 months of data and computes the following regression line:

Profit = 372.6 + 17.2 (advertising dollars)

What is the value of the residual for advertising dollars spent equal to $1,020 and Profit equal to $17,500? Round to the nearest integer.

+3

Answers (1)

Know the Answer?

Carl Sanford · Answer 1

Given:

Profit = 372.6 + 17.2 (advertising dollars)

advertising dollars = 1,020

profit = 17,500

Profit = 372.6 + 17.2 (advertising dollars)

We'll just input the amount specified in the equation.

17,500 = 372.6 + 17.2 (1020)

17,500 = 372.6 + 17,544

17,500 = 17,916.60

As you can see, the values do not equal. Its difference is the residual value.

17,916.60 - 17,500 = 416.60 residual value