Here are some diagnostic plots for the home prices data from Exercise 29. These were generated by a computer package and may look different from the plots generated by the packages you use. (In particular, note that the axes of the Normal probability plot are swapped relative to the plots we€™ve made in the text. We only care about the pattern of this plot, so it shouldn€™t affect your interpretation.) Examine these plots and discuss whether the assumptions and conditions for the multiple regression seem reasonable.

Normal Probability Plot

Transcribed Image Text:

150000 100000 50000 -50000 -100000 100000 200000 300000 400000 Fitted Value -1 -100000 -50000 050000 100000 150000 Residual (S) -50000 0 50000 100000 150000 Residual ($)