There is data on annual income and years of education and a fitted linear mean regression model to the data and the following equation for the estimated average annual income is given the years of education.

Annual Income = 20,000 + 2,000*(Years of Education) + Error

a)In the data there is a person with 12 years of education and an annual income of $50,000. For the below two questions show work to demonstrate how these values are calculated.

a.Provide the fitted value for this observation.

b.Provide the residual for this observation.

b)Correct the following statement. "I estimate that a person with 10 years of education will have an annual income of $40,000.''