Recall the Florida pool home case discussed in Exercise 14.30. Residual plots resulting from fitting the model
Price = β0 + β1 SqrFt + β2 Bathrms + β3 Niceness + β4 Pool? + ε
are as shown in Figure 14.26 on the next page.
a. The residuals are plotted against the predicted prices and against each of the four predictor variables. Do these plots reassure you that the regression assumptions are being met? Explain.
b. Which regression assumption is addressed by the normal probability plot of the residuals? What do you decide about the validity of this assumption?