Lobster industry 2008. According to the Maine Department of Marine Resources, in 2008 more than 69,700,687 pounds of lobster were landed in Maine—a catch worth more than $244,195,000. The lobster fishing industry is carefully controlled and licensed, and facts about it have been recorded for more than a century, so it is an important industry that we can examine in detail. We’ll look at annual data (available at www.maine.gov/dmr) from 1950 through 2008.

The value of the annual lobster catch has grown.

Here’s a scatterplot of the value in millions of dollars over time:

a) Which regression assumptions and conditions appear to be violated according to this plot?
Here’s a scatterplot of the log of the value:

b) Discuss the same assumptions as in part

a. Does taking logs make these data suitable for regression?
After performing a regression on the log values, we obtain the following plot of residuals:

c) Discuss what this plot shows. Would a different transformation be likely to do better than the log? Explain.

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Value ($m) 300 225 150 10 75 1950.0 1962.5 1975.0 1987.5 2000.0 Year