The Scatter Plot and Residual Plot Shown Below Is from a Regression

question 23

Essay

The scatter plot and residual plot shown below is from a regression analysis of Prehistoric Native American projectile points. The widths of the projectiles were regressed on the length of the projectile points. Using these plots categorize each of the Basic Assumptions of the simple linear regression model as one of the following:
a) Not checkable
b) Checked and met
c) Checked and not met
For all assumptions checked, explain what aspect of the graphs led you to your conclusion that the assumption was met or not met.

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Definitions:

Elasticities of Demand

A measure of how much the quantity demanded of a good responds to a change in price, indicating the sensitivity of consumers to price changes.

Economic Incentive

A financial or material benefit that motivates individuals or businesses to act in certain ways or pursue particular courses of action.

Price Discrimination

A method of pricing in which a provider charges different prices for virtually identical goods or services in different market areas.

Electric Heating

A system of converting electric energy into heat for warming indoor spaces, typically regarded as more efficient than traditional heating methods.