An estimated regression for a random sample of observations on an assembly line is Defects = 3.2 + 0.045 Speed, where Defects is the number of defects per million parts and Speed is the number of units produced per hour. The estimated standard error is se = 1.07. Suppose that 100 units per hour are produced and the actual (observed) defect rate is Defects = 4.4.
(a) Calculate the predicted Defects.
(b) Calculate the residual.
(c) Standardize the residual using se.
(d) Is this observation an outlier?