A simple linear regression was performed in StatCrunch about

A simple linear regression was performed in StatCrunch about the relationship between price and square footage of homes in Albuquerque, NM. The following equation for the regression line was given:

PRICE = 47.82 + 61.367 SQFT

Carrie\'s home has 1894 square feet, and is worth $113,500. What is the residual value?

Give your answer to the nearest dollar. For help on how to input a numeric answer, please see \"Instructions for inputting a numeric response.\"

Solution

The difference between an observedvalue of the response variable and the value of the response variable predicted from the regression line.

113,500 - [47.82 + 61.367 *1894]=   113,500 -116276.918= -2776.918