The Association of Turkish Travel Agencies reports the number of foreign tourists visiting Turkey and tourist spending by year. Three plots are provided: scatterplot showing the relationship between these two variables along with the least squares t, residuals plot, and histogram of residuals.

(a) Describe the relationship between number of tourists and spending.

(b) What are the explanatory and response variables?

(c) Why might we want to fit a regression line to these data?

(d) Do the data meet the conditions required for fitting a least squares line? In addition to the scatterplot, use the residual plot and histogram to answer this question.

Transcribed Image Text:

Spending (million $) 5000 10000 15000 T 25000 5000 15000 Number of tourists (thousands) Residuals 1000 -1000 5000 15000 Number of tourists (thousands) 25000 20- 10- 0- -1500 -750 ó Residuals 750 1500