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?

Answer 1

Answer:

The residual would be 4569.

Explanation:

Residual is a difference between the observed value and the estimated value.

123,415 - 118,846 = 4569

Answer 2

Answer:

4569 would be the residual.

Explanation:

The residual of the data point is the amount, or rather the difference in units between the expected or estimated quantity and the actual pbserved number, this is calculated by withdrawing from the observed amount the expected, and you could get a positive or negative number, this is often used to test if the estimations made were correct.

So in this case you should withdraw from the 123,415 units produced, the 118,846 units expected, and the difference of 4,569 is the residual.