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 city has free downtown parking, 0 otherwise. The estimated regression
equation is . In city 3, the observed Y value is 7.3 and 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
B) 1.15
To find the residual for city 3 in this regression analysis, we need to substitute the values of X1 and X2 into the estimated regression equation and compare it to the observed value of Y.
The estimated regression equation is not provided in the question, so we cannot directly calculate the residual. However, we can use the information given to estimate the equation using multiple linear regression.
The estimated regression equation would be of the form:
Y = b0 + b1*X1 + b2*X2
To estimate the coefficients b0, b1, and b2, we would need the data from all 22 cities, but the values are only provided for city 3.
Therefore, without more information or data on the other cities, we cannot determine the estimated regression equation and calculate the residual for city 3.