Residual Graph

[charlottecharlielee]

Hi everyone,
I'm having trouble understanding residual graphs and have been trying to work out this one graph for about an hour with no success. It would be great if someone told me what this graph actually means? The context is around the question: "Does the price of real estate depend on the proximity of their location to a place of significance?"

I also don't know what to title the axis, if anyone could help with that? Thank you so much.

The variables are the price of real estate (y) and the distance to the place of significance (x).

 

[lev888]

Price of real estate can be low, but can it be negative?

 

[Harry_the_cat]

The x-axis is distance from significant place. The y-axis is the difference between actual price and price predicted by your linear regression model.
What is your regression line and what is your R value ?

 

[Deleted member 4993]

Hi everyone,
I'm having trouble understanding residual graphs and have been trying to work out this one graph for about an hour with no success. It would be great if someone told me what this graph actually means? The context is around the question: "Does the price of real estate depend on the proximity of their location to a place of significance?"

I also don't know what to title the axis, if anyone could help with that? Thank you so much.

The variables are the price of real estate (y) and the distance to the place of significance (x).
View attachment 14939

Did you plot this (through Excel) from a given data-set or this graph was supplied to you?

Please post the complete assignment.

 

[charlottecharlielee]

The x-axis is the distance from the significant place. The y-axis is the difference between the actual price and price predicted by your linear regression model.
What is your regression line and what is your R-value?

The r-value is -0.85235
the r-squared value is 0.7265
if this means anything, the y= -15605x + 409831

 

[charlottecharlielee]

here is the data-set:
x is the distance to place of significance, y is price value of real estate

 

[Deleted member 4993]

Hi everyone,
I'm having trouble understanding residual graphs and have been trying to work out this one graph for about an hour with no success. It would be great if someone told me what this graph actually means? The context is around the question: "Does the price of real estate depend on the proximity of their location to a place of significance?"

I also don't know what to title the axis, if anyone could help with that? Thank you so much.

The variables are the price of real estate (y) and the distance to the place of significance (x).
View attachment 14939

I'll ask again:

Did YOU plot this (through Excel) from a given data-set or​

​

this graph was GIVEN to you?​

 

[Harry_the_cat]

It's important to answer Subhotosh's question above.
The data you've given doesn't appear to match the residual plot. Have you given ALL the data?
For example, your data shows 10 values where distance<5, but your residual plot only shows 5 points where distance <= 5.
Another example, the point at approx (1, 0), ie distance of 1km, doesn't match with any of your data.
So where has the residual plot come from? It may be incorrect. In which case, it needs to be fixed first, before anyone can help you interpret it.

(As your data mentions QUT, I assume you are in Brisbane. Is this a General Maths PSMT?)