Question

question 9 of 10
what does it mean to say that a data point has a residual of 1?
a. the point lies 1 unit below the regression line.
b. the x-coordinate of the point is 1.
c. the point lies 1 unit above the regression line.
d. the point lies directly on the regression line.

Explanation:

A residual is calculated as $y - \hat{y}$, where $y$ is the observed value of the data point and $\hat{y}$ is the predicted value from the regression line. A positive residual means the observed value is greater than the predicted value, so the point lies above the regression line. A residual of 1 means the difference is 1 unit.

Answer:

C. The point lies 1 unit above the regression line.