The regression equation is POVERTY = 10 + 1(UNEMPLOYMENT) - 0.5(COLLEGE). A county has a POVERTY rate of 30, an UNEMPLOYMENT rate of 10, and COLLEGE graduate rate of 10. What is the county's regression residual?
A) −50
B) −15
C) 15
D) 50

Question

Quizplus · Accepted Answer

The regression equation is used to predict the POVERTY rate based on UNEMPLOYMENT and COLLEGE rates. Plugging in the given values: POVERTY = 10 + 1(10) - 0.5(10) = 10 + 10 - 5 = 15. The actual POVERTY rate is 30, so the residual (actual - predicted) is 30 - 15 = 15.

The Regression Equation Is POVERTY = 10 + 1(UNEMPLOYMENT) -