16Hit1600
Problem-Solving and Data AnalysisVery hardInterpreting a residual

Problem-Solving and Data Analysis practice question

A line of best fit predicts that a house with 3 bedrooms sells for $310,000. One particular 3-bedroom house sold for $295,000. Which statement about this house is true?

  1. A. It sold for $15,000 less than the model predicted, so its point lies below the line.Correct
  2. B. It sold for $15,000 more than the model predicted, so its point lies above the line.
  3. C. The model predicts it will sell for $295,000.
  4. D. The house must have had fewer than 3 bedrooms.

Answer: A. It sold for $15,000 less than the model predicted, so its point lies below the line.

Actual − predicted = 295,000 − 310,000 = −15,000: below the line.

Why the other answers are wrong

B. It sold for $15,000 more than the model predicted, so its point lies above the line.
The actual price is less than the prediction.
C. The model predicts it will sell for $295,000.
The prediction is $310,000; $295,000 is the actual price.
D. The house must have had fewer than 3 bedrooms.
A point below the line is normal scatter, not a change in bedrooms.

More Problem-Solving and Data Analysis questions

Not affiliated with the College Board. SAT is a trademark of the College Board.