The owner of a used car dealership is trying to determine if there is a relationship between the price of a used car and the number of miles it has been driven. The owner collects data for 25 cars of the same model with different mileage and determines each car’s price using a used car website. The analysis is given in the computer output. Open image in full-screen view Which of the following represents the value of the average residual for a car’s price?
In a least-squares regression that includes an intercept, the residuals sum to zero, so their average is zero (apart from possible rounding). The listed value closest to zero is 0.024, so the average residual is represented by choice A.
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