Use the Following to Answer Questions 5 - 8 -Using the Estimated Regression Equation,
A

Use the following to answer questions 5 - 8.
To determine whether the cash bonus paid by a company is related to annual pay, data
were gathered for 10 account executives at Johnson Financial Group who received cash
bonuses in 2007. The data, scatterplot, and summary statistics are shown below. $$\begin{array} { | l | l | l | } \hline & \text { ANNUAL PAY } & \text { CASH BONUS } \\\hline & \$ 70609 & \$ 11225 \\\hline & \$ 58487 & \$ 6238 \\\hline & \$ 104561 & \$ 14194 \\\hline & \$ 43922 & \$ 4188 \\\hline & \$ 82613 & \$ 11863 \\\hline & \$ 116250 & \$ 13671 \\\hline & \$ 76751 & \$ 7758 \\\hline & \$ 68513 & \$ 20760 \\\hline & \$ 137000 & \$ 55000 \\\hline & \$ 94469 & \$ 34368 \\\hline & & \\\hline \text { Mean } & \$ 85318 & \$ 17927 \\\hline \text { Standard Deviation } & \$ 28077 & \$ 15618 \\\hline & & \\\hline \text { Correlation } & 0.735 & \\\hline\end{array}$$
-Using the estimated regression equation,
a. Estimate the cash bonus for an executive at Johnson Financial earning $82, 613 a year. b. What is the residual for this estimate?
What does it mean?