What the exam asks
Expect to be tested on four specific skills using tables, scatterplots, or computer regression output:
- Calculate a residual () or work backward to find an actual response value given a residual and a regression equation.
- Interpret a residual in context, stating whether the linear model overpredicted or underpredicted the response variable.
- Identify a residual plot and its axes.
- Justify whether a linear model is appropriate by examining the pattern of points in a residual plot.
Core ideas
Calculating residuals
A residual is the vertical distance between an observed data point and the value predicted by the regression model .
- is the actual (observed) value of the response variable from the dataset.
- is the predicted value of the response variable, calculated by substituting into the regression equation .
By rearranging the formula, you can also find the actual observed value if you know the predicted value and the residual:
Interpreting residuals
The sign of a residual tells you whether the actual data point lies above or below the regression line:
| Sign of residual | Position of point relative to line | Comparison of and | What the model did |
|---|---|---|---|
| Positive () |