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A simple linear regression, ,is estimated using cross-sectional data from 10 firms.The resulting residuals e,along with the values of the explanatory variable Advertising (x,in $100s),are shown in the accompanying table.
a.Graph the residuals e against Advertising (x)and look for any discernible pattern.
b.Which assumption is being violated? Discuss its consequences and suggest a possible remedy.
Dispositional Cause
Cause of behavior attributed to internal factors such as personality or character.
Situational Cause
Cause of behavior attributed to external factors, such as delays, the action of others, or some other aspect of the situation.
Fundamental Attribution Error
The tendency to attribute others' actions to their character or personality, while attributing our own behaviors to external situational factors.
Internal Attributions
The process of inferring that personal factors, rather than external factors, are the cause of an event or behavior, suggesting that a person’s actions are due to their individual characteristics such as personality or effort.
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