Table P-16 contains data on newsprint consumption (Y) during a particular year and number of families in the city (X) for a sample of n = 23 cities.

a. Plot newsprint consumptions 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.