Dr. Watt is studying the relation between the percentage of a population who has a bachelor's degree (X) and the average income (Y) in 108 cities. After fitting a simple linear regression model, he decides to assess whether the assumptions of the model are reasonably satisfied. Below is one of the plots he uses to assess the assumptions.
(a) What assumption(s) is Dr. Watt trying to assess using this plot?
(b) Based on the plot, is there any indication of assumption violations? If so, which assumption(s) has (have) been violated?
(c) What are the possible consequences of the assumption violation(s)?
(d) Suggest at least one solution to fix the problem.

Question

Dr. Watt is studying the relation between the percentage of a population who has a bachelor's degree (X) and the average income (Y) in 108 cities. After fitting a simple linear regression model, he decides to assess whether the assumptions of the model are reasonably satisfied. Below is one of the plots he uses to assess the assumptions.
  (a) What assumption(s) is Dr. Watt trying to assess using this plot?
(b) Based on the plot, is there any indication of assumption violations? If so, which assumption(s) has (have) been violated?
(c) What are the possible consequences of the assumption violation(s)?
(d) Suggest at least one solution to fix the problem.

Quizplus · Accepted Answer

The Answer of Dr. Watt is studying the relation between the percentage of a population who has a bachelor's degree (X) and the average income (Y) in 108 cities. After fitting a simple linear regression model, he decides to assess whether the assumptions of the model are reasonably satisfied. Below is one of the plots he uses to assess the assumptions.
  (a) What assumption(s) is Dr. Watt trying to assess using this plot?
(b) Based on the plot, is there any indication of assumption violations? If so, which assumption(s) has (have) been violated?
(c) What are the possible consequences of the assumption violation(s)?
(d) Suggest at least one solution to fix the problem.

Dr Watt Is Studying the Relation Between the Percentage of a Population