what is the residual for 12 hours of study per week what does this indicate about the regression line at that point? Use data below

Question

Time 14, 25, 15, 5, 10, 12, 5, 21

GPA: 3.1, 3.7, 3.4, 3.0, 3.1, 3.3, 2.7, 3.8

Answer 1

The regression line is GPA = 0.05 * TIME + 2.62

When TIME = 12 predicted GPA = 0.05 * 12 + 2.62 = 3.22

Observed for TIME = 12, GPA = 3.3

residual = observed - predicted = 3.3 = 3.22 = 0.08

at that point the regression line is underestimating the GPA