Answer:
C. The point lies 1 unit below the regression line.
Explanation:
A residual is calculated by doing the true value minus the predicted value. For instance, if a point's true value is 5, but the predicted value is 3, the residual of the point will be 5 - 3 = 2.
The regression line is the line of predicted values. So, if a data point has a residual of -1, that means that the predicted value overpredicted the point's value. So, the point will lie C. 1 unit below the regression line.
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