What does a positive regression residual mean?
A) The two variables have a positive correlation.
B) That a case's actual value on the dependent variable is exactly what was predicted by the regression equation.
C) That a case's actual value on the dependent variable is greater than what was predicted by the regression equation.
D) The slope of the best-fitting straight line is positive.

Question

Quizplus · Accepted Answer

A positive residual means that the actual value on the dependent variable is greater than what was predicted by the regression equation. This indicates that there may be something that the regression equation has missed or not accounted for in the data. It does not necessarily mean that there is a positive correlation between the variables or that the slope of the best-fitting line is positive.

What Does a Positive Regression Residual Mean