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

question 53

Essay

The scatter plot and residual plot shown below are from a regression analysis of Prehistoric Native American projectile points. The lengths of the projectiles were regressed on the width 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:

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered an operating expense.

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This term refers to the total amount a company spends on acquiring or maintaining fixed assets, minus any sales of these assets, over a given period.

Earnings Per Share

A financial metric that measures the amount of a company's profit attributable to each outstanding share of common stock, calculated as net income divided by the number of outstanding shares.

Shares Of Stock

Equal units of ownership in a corporation, representing a claim on part of the corporation’s assets and earnings.