[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)

  1. Calculate separately the regression equation linking Profit to Risk and the regression equation linking Profit to R&D.
  2. In each case show the residual plots.
  3. In either case is there any evidence that the linear assumption is violated?
  4. If so state how this might be corrected and re-run the regression(s) using the recommended correction(s).
  5. Has this improved the model(s)? If so explain how.

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