According to the Maine Department of Marine Resources, in 2012 more than 126,000,000 pounds of lobster were landed in Maine— a catch worth more than $ 338.9M. The lobster fishing industry is carefully con-trolled and licensed, and facts about it have been recorded for more than a century, so it is an important industry that we can examine in detail. We’ll look at annual data (avail-able at www.maine.gov/dmr) from 1950 through 2012. The value of the annual lobster catch has grown. Here’s a scatterplot of the value in millions of dollars over time:
a) Which regression assumptions and conditions appear to be violated according to this plot? Here’s a scatterplot of the log of the value:
b) Discuss the same assumptions as in part a. Does taking logs make these data suitable for regression? After performing a regression on the log values, we obtain the following plot of residuals:
c) Discuss what this plot shows. Would a different transformation be likely to do better than the log? Explain.
Answer to relevant QuestionsHere’s a regression model relating the logValue of the annual Maine lobster catch to the number of licensed lobster Fishers since 1985: a) The number of licensed lobster fishers has fluctuated over the years between ...The Organization for Economic Cooperation and Development (OECD) is an organization comprised of thirty countries. To belong, a country must sup-port the principles of representative democracy and a free market economy. How ...A house in the upstate New York area from which the chapter data was drawn has 2 bedrooms and 1000 square feet of living area. Using the multiple regression model found in the chapter, Price = 20,986.09 - 7483.10Bedrooms + ...Using the regression table in Exercise 14, answer the following questions. a) How was the t-ratio of 126.7 found for Paid Attendance? (Show what is computed using numbers found in the table.) b) How many weeks are included ...Here are some more interpretations of the regression model to predict the price of wine developed in Exercise 24. One of these interpretations is correct. Which is it? Explain what is wrong with the others. a) The minimum ...
Post your question