State the assumptions in fitting and making inferences with the model E(y) = + x.Which assumptions are most critical? In view of these assumptions,

State the assumptions in fitting and making inferences with the model E(y) = α + βx.Which assumptions are most critical? In view of these assumptions, indicate why the model might not be adequate for

(a) x = income, y = charitable contributions within the previous year. (Hint: Would poor people show as much variation as wealthy people?)

(b) x = age, y = annual medical expenses.