Question

In Problem 13.4 on page 469, you used the efficiency ratio and total risk based capital data stored in CommunityBanks to predict ROA at a community bank.
a. Plot the residuals versus ŷi.
b. Plot the residuals versus X1i.
c. Plot the residuals versus X2i.
d. Plot the residuals versus time.
e. In the residual plots created in (a) through (d), is there any evidence of a violation of the regression assumptions? Explain.


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  • CreatedJuly 16, 2015
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