The document Arizona Residential Property Valuation System, published by the Arizona Department of Revenue, describes how county assessors use computerized systems to value single-family residential properties for property tax purposes. On the Weiss Stats CD are data on lot size (in acres) and assessed value (in thousands of dollars) for a sample of homes in a particular area.
a. Obtain and interpret the standard error of the estimate.
b. Obtain a residual plot and a normal probability plot of the residuals.
c. Decide whether you can reasonably consider Assumptions 1–3 for regression inferences met by the two variables under consideration.