In: Statistics and Probability
The linear regression equation for predicting poverty (%) from the high school graduation rate (%) is as follows: ˆ y = 29 -0.2*x High school graduation rate for North Carolina is 22% and the poverty rate is 29.5%. Find the residual for this observation (round your answer to one decimal place)
SOLUTION:
From given data,
The linear regression equation for predicting poverty (%) from the high school graduation rate (%) is as follows: = 29 - 0.2*x .
High school graduation rate for North Carolina is 22% and the poverty rate is 29.5%. Find the residual for this observation
x = 22% = 22/100 = 0.22
The predicted poverty rate = = 29 - 0.2*x
= 29 - 0.2*0.22
= 29 - 0.044
= 28.9 %
Actual poverty rate = 29.5%
The residual of the observation = Actual value - predicted value
The residual of the observation = 29.5 - 28.9
The residual of the observation = 0.6 (round your answer to one decimal place)