Question

Based on the regression model, the expected daily production volume with 112 factory workers is 118,846 units. The human resource department noted that 123,415 units were produced on the most recent day on which there were 112 factory workers. What is the residual of this data point?a) -4,569 units b) -2,163 units c) -41 units d) 41 units e) 2,163 units f) 4,569 units

Answer 1

a) -4,569 units

Explanation:

Regression is a statistical process to analyse relationship between a dependent variable & one or more independent variables.

Residual in regression at a data point is the difference between : regression based estimated or observed value of the dependent variable and the real value of the dependent variable.

Given :

• Regression model expected value of variable 'daily production volume' with 112 workers = 118846
• Actual noted value of variable 'daily production volume' with 112 workers = 123415

Residual : Estimated / observed value of daily production volume - actual noted value daily production volume

118846 - 123415

= - 4569 Units

Answer 2

f. 4,569 units

Explanation:

Given data is provided

Measured value = 123,415 units

Expected value = 118,846 units

The computation of the given question is below:-

Residual = Measured value - Expected value

= 123,415 units - 118,846 units

= 4,569 units

Therefore, to compute the residual of this data point we simply deduct the Expected value from Measured value.