QUESTION 2:Calculate the residual for the first observation from the simple linear regression model.Recall, the Residual = Observed value - Predicted value or e = y - .

Observed value of y for the first observation from the dataset:

Predicted value of y for the first observation (Hint:To find this, substitute the actual value of x for the first observation into the regression equation and solve for y):

Residual:

Coefficients

Intercept -1932.108684

Age 14.12302239

Annual Income 0.016677283

Number of People in Household 2222.506847

Gender(0 = Male;1 = Female) 40.50058317

Observation Predicted Annual Amount Spent on Organic Food Residuals

1 7692.68 -344.68

2 11718.89 -120.89

3 9193.42 30.58

4 11649.14 1341.86

5 11902.46 4653.54