Given below are the population, number of households, and average income for 10 Canadian cities. Use the data to develop a regression model to predict average income from population and number of households. Graph each of these predictors separately with the response variable and use Tukey’s four-quadrant approach to explore possible recoding schemes for nonlinear relationships. Comment on the regression model and its strengths and weaknesses.

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Toronto Montreal Vancouver Calgary Ottawa-Gatineau Edmonton Winnipeg Quebec City Hamilton London Average Income ($) 109,480 82,589 96,423 140,919 100,760 121,620 89,975 81,261 97,211 83,246 Number of Families Population (thousands) (thousands) 2549 1904 1141 617 600 593 352 387 327 230 5928 4099 2463 1393 1324 1321 778 800 748 494