Statistics for Business & Economics
Statistics for Business & Economics
16th Edition
ISBN: 9781337325448
Author: Anderson
Publisher: CENGAGE C
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Chapter 16.1, Problem 3E

a.

To determine

Decide whether there appears to be linear relationship between x and y.

b.

To determine

Construct the estimated regression equation that relates x and y.

c.

To determine

Plot the standardized residual versus the y^ for the estimated regression equation developed.

Explain whether the model assumptions appear to be satisfied.

d.

To determine

Perform a logarithmic transformation on the variable y.

Construct the estimated regression equation using the transformed dependent variable.

Decide whether the model assumptions appear to be satisfied by using the transformed dependent variable.

Explain whether a reciprocal transformation works better in this case.

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