Question

Suppose that for a typical FedEx package delivery, the cost of the shipment is a function of the weight of the package. You find out that the regression equation for this relationship is (cost of delivery) = 0.571*(weight) + 5.366. If a package you want to ship weighs 22.321 ounces and the true cost of the shipment is $11.23, the residual is -6.881. Interpret this residual in terms of the problem.

Question 10 options:

	1) The cost of delivery is 11.23 dollars less than what we would expect.
	2) The cost of delivery is 6.881 dollars greater than what we would expect.
	3) The cost of delivery is 6.881 dollars less than what we would expect.
	4) The weight is 6.881 points less than what we would expect.
	5) The weight is 6.881 points larger than what we would expect.

Answer 1