To the right are the residuals for a regression of Price on Capacity for data on hard drives.
a) Which drive capacity contributes the most to the sum that is minimized by the least squares criterion?
b) Two of the residuals are negative. What does that mean about those drives? Be specific and use the correct units.
|
Capacity (TB) |
Residual ($) |
||
|---|---|---|---|
|
0.060 |
3.06 |
||
|
0.11 |
3.13 |
||
|
0.28 |
4.28 |
||
|
0.32 |
19.11 |
||
|
2.0 |
-23.22 |
||
|
4.0 |
−19.15 |
||
|
5.0 |
12.79 |
||
a) The largest residual in magnitude is -23.22. Therefore, the residual -23.22 contribute most to the sum that is minimized by the least squares criterion.
b) Two of the residuals are negative. The negative residuals mean that the predicted price of 2.0 TB and 4.0 TB capacity were more than their actual price.
We overestimated these prices.
To the right are the residuals for a regression of Price on Capacity for data on...
To the right are the residuals for a regression of Price on Capacity for data on hard drives. a) Which drive capacity contributes the most to the sum that is minimized by the least squares criterion? b) Two of the residuals are negative. What does that mean about those drives? Be specific and use the correct units. Capacity (TB) Residual ($) 0.080.08 3.583.58 0.140.14 3.043.04 0.250.25 4.374.37 0.310.31 17.5817.58 2.02.0 negative 22.22−22.22 4.04.0 negative 15.41−15.41 5.05.0 9.069.06 a) The drive...