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In: Statistics and Probability

The linear regression equation for predicting poverty (%) from the high school graduation rate (%) is...

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)

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Expert Solution

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)


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