A Test Is Conducted in 22 Cities to See If $\hat { Y } = 1.32 + 0.0345 X _ { 1 } - 1.45 X _ { 2 }$

question 41

Multiple Choice

A test is conducted in 22 cities to see if giving away free transit system maps will increase the number of bus riders. In a regression analysis, the dependent variable Y is the increase in bus riders (in thousands of persons) from the start of the test until its conclusion. The independent variables are X₁ = the number (in thousands) of free maps distributed and a binary variable X₂ = 1 if the city has free downtown parking, 0 otherwise. The estimated regression equation is $\hat { Y } = 1.32 + 0.0345 X _ { 1 } - 1.45 X _ { 2 }$ . In city 3, the observed Y value is 7.3, X₁ = 140, and X₂ = 0. The residual for city 3 (in thousands) is:

• A)6.15.
• B)1.15.
• C)4.83.
• D)1.57.

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