Use the following information for following questions:. A salesman says he can predict the sales
price of used Toyota Corollas by using the equation
Sale Price = 14300 - 960 Age
-Using the information above, find the value of the residual for a used Toyota Corolla that is 7 years old and has an actual price of $6950.
A)$630
B)$0
C)-$630
D)-$6390

Question

Quizplus · Accepted Answer

The predicted sale price using the given equation for a 7-year-old Toyota Corolla is: Sale Price = 14300 - 960(7) = 14300 - 6720 = $7580. The residual is the difference between the actual price and the predicted price: $6950 - $7580 = -$630.

Use the Following Information for Following Questions