For Exercises 11.1 and 11.2, see page 533; for 11.3 and 11.4, see page 535; for 11.5 and 11.6, see page 537; for 11.7 and 11.8, see page 538; for 11.9 and 11.10, see page 541; for 11.11 to 11.14, see pages 543–544; and for 11.15 and 11.16, see page 544.
11.5 Is there a problem?
Refer to Exercise 11.4 (page 535). The 55 firms in the sample represented a range of industries, including retail and computer manufacturing. Suppose this resulted in the response variable, annual profits, having a bimodal distribution (see page 56 for a trimodal distribution). Considering that this distribution is not Normal, will this necessarily be a problem for inference in multiple regression? Explain your answer.
11.5
No. Multiple regression does not require the response to be Normally distributed, only the residuals need to be Normally distributed.