A Local Tire Dealer Wants to Predict the Number of Tires

question 24

Multiple Choice

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 = 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.

• A)1
• B)-2
• C)2
• D)-1

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Definitions:

Self-fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true.

Prejudices

Preconceived opinions or judgments about individuals or groups that are not based on reason or actual experience, often manifesting as biases or discrimination.

Stereotypes

Generalized beliefs or expectations about a particular group of people that may not accurately reflect reality.

Prejudice Reduction

Strategies and techniques aimed at decreasing negative biases and judgments towards certain groups.