Of course, what matters most to the individual entrepreneur€”the licensed commercial lobster fisher€”is the price of lobster. Here€™s an analysis relating that price ($/lb) to the number of traps (millions) since 1950:

a) Are the assumptions and conditions for regression inference satisfied?
b) What does the coefficient of Traps mean in this model? Does it predict that licensing more traps would cause an increase in the price of lobster? Suggest some alternative explanations.

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0.75 1.50 225 300 Traps (M) 0.8 0.4 0.0 -04 15 10 0.750 00 0250 750