While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the...

While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.442*(age) + 2.642. If a customer is 39.621 years old and they make an average of 11.974 claims per year, what is the residual?

a. -27.647 b. 27.647 c. 8.18 d. 19.467 e. -8.18