Question: Hardy Gumshoe warden of Notomorrow State Penitentiary asked his staff
Hardy Gumshoe, warden of Notomorrow State Penitentiary asked his staff analyst to look into the relationship between the number of prisoners (X) and the number of disturbances made by them (Y). The analyst performed a regression analysis. Gumshoe notices that the regression equation predicts the number of disturbances very accurately when there are few prisoners, but as the number of prisoners increases the regression makes sizeable errors in prediction. In fact, as the number of prisoners increases, the greater the degree to which the regression equation underestimates the number of disturbances made by prisoners. Based on this information, what do you think is the source of error in the regression equation? Explain your answer.
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