Based on a sample of the salaries of professors at a major university,you have performed a multiple linear regression relating salary to years of service and gender.The data included information on the following variables. The estimated multiple linear regression model is Salary = 45 + 3(Years) + 4(Gender) + 1(Years) (Gender) .
A particular female professor with 6 years of experience currently has a salary of $60,000.What is the residual for this observation?

A) -$9000
B) -$3000
C) $3000
D) $9000

Question

Based on a sample of the salaries of professors at a major university,you have performed a multiple linear regression relating salary to years of service and gender.The data included information on the following variables.

The estimated multiple linear regression model is Salary = 45 + 3(Years) + 4(Gender) + 1(Years) (Gender) .
A particular female professor with 6 years of experience currently has a salary of $60,000.What is the residual for this observation?

A) -$9000
B) -$3000
C) $3000
D) $9000

Hadia Zafar · Accepted Answer

Final Answer : B, Explanation :  Plug in the known values into the estimated multiple linear regression model:Salary = 45 + 3(6) + 4(1) + 1(6)(1)Salary = $69,000The residual is the difference between the actual salary and the predicted salary:Residual = Actual salary - Predicted salaryResidual = $60,000 - $69,000Residual = -$9,000Therefore, the answer is B) -$3000 because it is the only choice that matches the calculated residual.

Definitions

Learning Objectives

Learning Objectives

Related questions