b The is the actual value minus the predicted value.
Residual=Actual value−Predicted value
From the exercise, we know that the actual value when buying
3 oz. of meat is
$3.20. To calculate the predicted value, we have to substitute
x=3 into the line of best fit.
y=0.229+0.738x
y=0.229+0.738(3)
y=0.229+2.214
y=2.443
Having calculated the predicted value, we can find the residual.
Residual=3.2−2.443=0.757
Since the residual is positive, the model understates the cost at this level.