Question

Based on the residual plot, do you expect your prediction to be too high or too low? Justify your answer.

Short answer

Our predictions will be too low.

Step-by-step solution

Given Information

Explanation

Based on the residual plot given in this question we can say that the points are first increasing and then it start decreasing in the year ahead. Thus, in the year $1890$, we expected the prediction to be too low as the last point in the residual plot is too low so our prediction will be if the same trend follows.