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Aleksandr [31]
3 years ago
5

What is the residual of a week in which a barrel of crude oil costs $60 and a barrel of jet fuel costs $78?

Mathematics
1 answer:
ki77a [65]3 years ago
6 0

Answer:

residual cost = $24.57

Step-by-step explanation:

The residual is the difference between the observed value of y and the predicted value of y. The least square regression equation was used to predict cost in dollars per barrel of jet fuel  from the cost , in dollars ,per barrel of crude oil. The residual value is the difference between the observed or measured value and the predicted value of  the regression model . The predicted value is gotten from the regression equation.

y = 2 + 6/7 x

where

x = cost of a barrel of crude oil

x = $60

y = 2 + 6/7 × 60

y = 2 + 360/7

y = 2 + 51.4285714286

y = 53.4285714286

y = $53. 43

predicted cost = $53. 43

Measured cost  = $78

residual = observed value - predicted value

residual = 78 - 53.43

residual cost = $24.57

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