Question: 12.91 Assumptions fail? Refer to the previous exercise. In view of these assumptions, indicate why such a model would or would not be good in
12.91 Assumptions fail? Refer to the previous exercise. In view of these assumptions, indicate why such a model would or would not be good in the following situations:
a. x = year (from 1900 to 2005), y = percentage unemployed workers in the United States. (Hint:
Does y continually tend to increase or decrease?)
b. x = age of subject, y = subject’s annual medical expenses. (Hint: Suppose expenses tend to be relatively high for the newborn and for the elderly.)
c. x = per capita income, y = life expectancy, for nations.
(Hint: The increasing trend eventually levels off.)
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