An estimated regression for a random sample of vehicles is MPG = 49.22 – 0.081 Horse- power, where MPG is miles per gallon and Horsepower is the engine's horsepower. The standard error is se = 2.03. Suppose an engine has 200 horsepower and its actual (observed) fuel efficiency is MPG = 38.15.
(a) Calculate the predicted MPG.
(b) Calculate the residual.
(c) Standardize the residual using se.
(d) Is this engine an outlier?