Lobster industry 2008, price diagnosed. In Chapter 18, Exercise 35 (Lobster industry 2008), we constructed the following regression model to predict the Price of lobster harvested in Maine’s lobster fishing industry.

At that time we also examined plots of the residuals which appeared to satisfy the assumptions and conditions for regression inference. Let’s look a bit deeper. Here are histograms of the Cook’s Distances and Studentized residuals for this model.

The case with large Cook’s Distance is 1994, which was also the year with the lowest Studentized residual. What does this suggest about this model? What would you recommend?

Transcribed Image Text:

Dependent variable is: Price/lb R-squared 94.4% R-squared (adjusted) 94.1% s = 0.2462 with 53 449 degrees of freedom Variable SE (Coeff) t-ratio P-value Coeff Intercept 0.845123 0.3557 2.38 Traps (M) 1.20094 0.0619 19.4 0.0215 0.0001 Fishers -1.21820e-4 0.0000 -3.30 0.0018 Catch/Trap -22.0207 10.96 -2.01 0.0500