Answer:
residual cost = $24.57
Step-by-step explanation:
The residual is the difference between the observed value of y and the predicted value of y. The least square regression equation was used to predict cost in dollars per barrel of jet fuel from the cost , in dollars ,per barrel of crude oil. The residual value is the difference between the observed or measured value and the predicted value of the regression model . The predicted value is gotten from the regression equation.
y = 2 + 6/7 x
where
x = cost of a barrel of crude oil
x = $60
y = 2 + 6/7 × 60
y = 2 + 360/7
y = 2 + 51.4285714286
y = 53.4285714286
y = $53. 43
predicted cost = $53. 43
Measured cost = $78
residual = observed value - predicted value
residual = 78 - 53.43
residual cost = $24.57
