Question: An analyst uses the data set in the Excel file to study the relationship between Demand ( the dependent variable ) and the two independent

An analyst uses the data set in the Excel file to study the relationship between Demand (the dependent variable) and the two independent variables: Price and Advertisement. He fits a First Order Model and discovers that the residual plot against Price shows a clear trend. Hence, he calculates the Partial Regression Residuals for Price as follows: P.R.R.
PRICE (X1)
-1403.1
$3.60
-1486.1
$3.80
-1597.1
$4.00
-1672.1
$4.20
-1759.1
$4.40
-1797.1
$4.60
?
$4.80
-1410.4
$3.60
-1493.4
$3.80
-1583.4
$4.00
-1680.4
$4.20
-1753.4
$4.40
-1816.4
$4.60
-1865.4
$4.80 The missing value marked as ? should be:
a.-$1,604.5
b.-$1,868.1
c.-$1,888.1
d. $1,604.5

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