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?
- A. It sold for $15,000 less than the model predicted, so its point lies below the line.Correct
- B. It sold for $15,000 more than the model predicted, so its point lies above the line.
- C. The model predicts it will sell for $295,000.
- 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.
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