2.145 Dwelling permits and production. Refer to the previous exercise.

1. (a) Make a scatterplot with production as the response variable and permits issued for new dwellings as the explanatory variable. Describe the relationship. Are there any outliers or influential observations?

2. (b) Find the least-squares regression line and add it to your plot.

3. (c) Interpret the slope of the line in the context of this exercise.

4. (d) Interpret the intercept of the line in the context of this exercise. Explain whether or not this interpretation is useful in explaining the relationship between these two variables.

5. (e) What is the predicted value of production for a country that has an index of 224 for dwelling permits?

6. (f) Canada has an index of 224 for dwelling permits. Find the residual for this country.

7. (g) What percent of the variation in production is explained by dwelling permits? How does this value compare with the value that you found in the previous exercise for the percent of variation in sales that is explained by building permits?