A researcher at a large company has collected data on the beginning salary and current salary of 48 randomly selected employees. The least squares regression equation for predicting their current salary from their beginning salary is y_hat = -2532.7 + 2.12x.
a. Kathy Jones started working for the company earning $19,998.58. What is Kathy's predicted current salary? (Round to 2 decimal places.)
b. Kathy Jones started working for the company earning $19,999.65. She currently earns $40,000. What is the residual for Mrs. Jones? (Round to 2 decimal places.)