[Solved] Using the data file RD6 on the Dielman CD-ROM (Chap. 6) Calculate separately the regression equation linking Profit to Risk and the regression equation
Question: Using the data file RD6 on the Dielman CD-ROM (Chap. 6)
- Calculate separately the regression equation linking Profit to Risk and the regression equation linking Profit to R&D.
- In each case show the residual plots.
- In either case is there any evidence that the linear assumption is violated?
- If so state how this might be corrected and re-run the regression(s) using the recommended correction(s).
- Has this improved the model(s)? If so explain how.
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