Table P-16 contains data for 23 cities on newsprint consumption (Y) and the number of families in
Question:
a. Plot newsprint consumption against number of families as a scatter diagram.
b. Is a simple linear regression model appropriate for the data in Table P-16? Be sure your answer includes an analysis of the residuals.
c. Consider a log transformation of newsprint consumption and a simple linear regression model relating Y = log (newsprint consumption) to X = number of families. Fit this model.
d. Examine the residuals from the regression in part c. Which model, the one in part b or the one in part c, is better? Justify your answer.
e. Using the fitted function in part c, forecast the amount of newsprint consumed in a year if a city has 10,000 families.
f. Can you think of other variables that are likely to influence the amount of newsprint consumed in a year?
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