The price ($/lb) of lobster harvested in the Maine lobster fishing industry is an important factor in the profitability of the industry. Here is a regression model to predict the Price from the number of Traps (millions), the number of Fishers, and the Catch/Trap (tonnes):

Dependent variable is: Price/lb

R-squared = 94.4% R-squared (adjusted) = 94.1%

s = 0.2462 with 53 - 4 = 49 degrees of freedom

Above is a histogram of the Cook’s Distances for this model. The case with the large Cook’s Distance is 1994, which was also the year with the lowest Studentized residual. What does this suggest about this model? What would you recommend?

Transcribed Image Text:

Variable SE(Coeff) 0.3557 0.0619 0.0000 P-Value 0.0215 <0.0001 0.0018 t-ratio Coeff 0.845123 1.20094 -1.21820e – 4 Catch/Trap -22.0207 2.38 Intercept Traps (M) Fishers 19.4 -3.30 -2.01 10.96 0.0500 40 - 30 20 10 – 0.00 0.10 0.20 Cook's Distance