What does it mean to say that a data point has a residual of one?

a)the point lies one unit below the regression line
b)the x coordinate of the point is 1
c)the point lies directly on their regression line
d) the point lies one unit above the regression line

Hello mate!

The residual value of a data point is calculated as:

Residual = actual value -  predicted value

where the actual value is the value of the data point, and the predicted value is predicted by the regression line.

Them if the residual is equal to 1; this means that the actual value is one unit bigger than the predicted value, then the actual value is one unit above the predicted value.

So the right answer is D "The point lies one unit above the regression line"