Question 2.129

2.129 Find the line and examine the residuals

Refer to the previous exercise. image

facsal

  1. Find the least-squares regression line for predicting 2015–2016 salaries from 2014–2015 salaries.
  2. Analyze the residuals, paying attention to any outliers or influential observations. Write a summary of your findings.

2.129

(a) . (b) The residual plot shows two outliers, one high and one low.