A Local Tire Dealer Wants to Predict the Number of Tires

Short Answer

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of monthly tire sales (in thousands of tires)and monthly advertising expenditures (in thousands of dollars).The simple linear regression equation is ŷ = 3 + 1x.The dealer randomly selects one of the six observations,with a monthly sales value of 8000 tires and monthly advertising expenditures of $7000.Calculate the value of the residual for this observation.