Use the data in Table 11.6 on page 707. You should perform the least-squares regression requested in
Question:
a. Plot the residuals from the least-squares regression against the 1970 price. Do you see a pattern?
b. Transform both prices to their natural logarithms and repeat the least-squares regression. Now plot the residuals against logarithm of 1970 price. Does this plot look any better than the one in part (a)?
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a A computer is useful to perform the regressions and plots for this exercise The two plots for pa...View the full answer
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Related Book For 
Probability And Statistics
ISBN: 9780321500465
4th Edition
Authors: Morris H. DeGroot, Mark J. Schervish
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