The video tutorial explains residuals, which are the differences between actual and predicted values, focusing on their calculation and interpretation. Residuals are vertical distances on a graph, representing the y-value difference between actual and predicted points. The tutorial provides an example using a scatter plot, showing how to calculate residuals and interpret them as positive or negative. A specific example is given, demonstrating the calculation process and the implications of residuals in terms of underestimation and overestimation by the best fit line.

What is a residual in the context of data analysis?

• The difference between actual and predicted values

• The ratio of actual to predicted values

• The sum of actual and predicted values

• The product of actual and predicted values

How can you remember the formula for residuals?

• AP: Actual plus Predicted

• AP: Actual divided by Predicted

• AP: Actual minus Predicted

• AP: Actual times Predicted

What does a residual represent on a graph?

• Diagonal distance

• Vertical distance

• Horizontal distance

• No distance

In the example provided, what happens to the number of people as hours increase?

• The number of people increases

• The number of people decreases

• The number of people fluctuates randomly

• The number of people remains constant

What is the equation of the best fit line used for?

• To calculate the sum of residuals

• To predict values based on the explanatory variable

• To find the maximum residual

• To determine the horizontal distance

What does a positive residual indicate?

• The actual value is below the predicted value

• The actual value is equal to the predicted value

• The actual value is above the predicted value

• The actual value is unrelated to the predicted value

What is the residual when the actual value is 50 and the predicted value is 45.46?

• 5.56

• 5.54

• 4.56

• 4.54

What does it mean if a point is on the best fit line?

• The residual is negative

• The residual is positive

• The residual is zero

• The residual is undefined

How do you calculate a residual?

• Divide actual by predicted

• Multiply actual by predicted

• Add actual and predicted

• Subtract predicted from actual

What does a negative residual indicate?

• The actual value is equal to the predicted value

• The actual value is below the predicted value

• The actual value is above the predicted value

• The actual value is unrelated to the predicted value