A company studying the productivity of its employees on a new information system was interested in determining if the age $( X )$ of data entry operators influenced the number of completed entries made per hour (Y). The regression equation is $\hat { y } = 14.374 - 0.145 x$. Suppose the actual completed entries per hour for an operator who is 35 years old was 8 . The residual is
A) $- 1.3$
B) $2.6$
C) $- 3.5$
D) $1.3$
E) $- 2.2$

Question

Quizplus · Accepted Answer

The residual is the difference between the actual value and the predicted value. The predicted value for an operator who is 35 years old is $\hat { y } = 14.374 - 0.145 x = 14.374 - 0.145 (35) = 9.624$. The residual is therefore 8 - 9.624 = -1.624, which is closest to -1.3.

A Company Studying the Productivity of Its Employees on a New