You estimate the following sample regression function:
Daily Earnings_hat = 80 + 10*Years_of_Education
A. -$60
B. -$20
C. $20
D. $160
Answer: B. -$20
Daily Earnings_hat = 80 + 10*Years_of_Education
Donald has 8 years of education and earns $140 a day. What is his sample residual?
A. -$60
B. -$20
C. $20
D. $160
Answer: B. -$20