Here are some displays related to the previous example’s regression of the percentage of income spent on food against household income “National survey of food expenditure”. Use them and the other information provided to check the regression assumptions. For each, indicate whether you think it’s satisfied and why.

QUESTION:

Do the assumptions and conditions for regression inference appear to be met?

Transcribed Image Text:

Residuals 250 125- 0+ -125 Food $/wk 500 375 250 125 CIDO CCC 00000 + 120 160 40 80 Household Income ($000) 150 100 50 -2 0 2 -200-100 0 100 200 300 400 Normal Scores Residuals