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Access the data le Homes (posted on Canvas). It consists of annual home maintenance expenditures (measured in dollars) and annual household income (measured in thousands
Access the data le \"Homes\" (posted on Canvas). It consists of annual home maintenance expenditures (measured in dollars) and annual household income (measured in thousands of dollars) for a random sample of 49 Florida homeowners. (a) Estimate a simple linear regression model where maintenance expenditures is the dependent variable and household income is the independent variable. Write down your estimated regression equation. (b) Identify and interpret the AdjustedR2. (c) Analyze your output for evidence of outliers. Identify which observations, if any, should be considered \"suspicious,\" and explain the basis for this suspicion. Determine whether any of the observations should be removed from the sample. Justify your choices. Reestimate your model and retest if necessary. ((1) Analyze your output and determine whether the errors are consistent with the assumption of homoscedasticity. Explain the basis for your determination. (You need NOT x, reestimate or retest the model in this part)
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