Question

What does it mean to say that a data point has a residual of -1?

•a) the point lies directly on the regression line
•b)the point lies 1 unit above the regression line
•c) the predicted value for that point is -1
•d)the point lies 1 unit below the regression line

Answer 1

Choice D is correct

Explanation:

A residual is simply the difference between the actual data point and the point on the fitted regression line; Actual data point - fitted regression point = residual. From this equation, for the residual to be negative then the point must be less than that on the regression lie and thus lie below it.