A Study Examined the Number of Trees in a Variety

question 63

Essay

A study examined the number of trees in a variety of orange groves and the corresponding number of oranges that each grove produces in a given harvest year. Linear regression was calculated and the results are below.
linear regression results:
Dependent Variable: oranges
Independent Variable: trees
Sample size: 9
R-sq = 0.886 s = 31394.7

$\begin{array}{|l|r|r|}\hline\text { Parameter }&\text { Estimate} &\text { Std. Err. } \\\hline \text { Constant} & 390.59 & 16328.8 \\\hline \text { Trees }& 525.84 & 71.22 \\\hline\end{array}$




-The farmer with 35 had 15,400 oranges; find the value of his residual. Show your work.

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Definitions:

Compound Annual Real Rate of Return

The rate of return on an investment, adjusted for inflation, that compounds annually, reflecting the true purchasing power of earnings.

Annual Rate of Inflation

The percentage increase in the price of goods and services over a one-year period, indicating the rate at which the purchasing power of money is eroded.

Compounded Quarterly

The process of adding interest to the principal amount of an investment or loan on a quarterly basis, leading to interest on interest.

Equivalent Payment

A method of determining the amount of regular payments that would have the same value as a different payment structure, often used in finance to compare loans or investments.