CAS Exam MAS-I Fall 2018, Question 29
Study guide: Exam MAS-I
An ordinary least squares model with one variable (Advertising) and an intercept was fit to the following observed data in order to estimate Sales:
| Observation | Advertising | Sales |
|---|---|---|
| 1 | 5.5 | 100 |
| 2 | 5.8 | 110 |
| 3 | 6.0 | 112 |
| 4 | 5.9 | 115 |
| 5 | 6.2 | 117 |
Calculate the residual for the 3^{\text{rd}} observation.
- A) Less than -2
- B) At least -2, but less than 0
- C) At least 0, but less than 2
- D) At least 2, but less than 4
- E) At least 4
Answer this question and see the worked solution