Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your analyst asks for your help with a different model they are working with (for which the previous plots don't apply). They are working

  image

Your analyst asks for your help with a different model they are working with (for which the previous plots don't apply). They are working with an ice cream vendor who is trying to predict ice cream sales (could be units sold, dollars - you don't know and it doesn't matter) based on the price of a cone (in dollars) and the outside temperature (in degrees). The estimated model is the following: In(sales) = -3.03price +.16temperature 6) What is the predicted sales when the price is $3 and the outside temperature is 85 degrees? Your analyst runs a linear regression and showed you the following two diagnostic plots. -4 Residuals 0246 Residuals vs Fitted 0.97 0.99 Fitted values Im(y ~X) 1.01 10 400 Histogram of reg1$residuals Frequency 200 0 -4 -20 2 4 reg1$residuals 5) Given the above plots, which suggestion is most appropriate? a) Transform X alone b) Look into another model, such as Poisson or another GLM c) Nothing wrong with these plots: everything looks fine d) Transform y, maybe try In(y) e) Increase the sample size

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Learning From Data

Authors: Roxy Peck

1st Edition

495553263, 978-1285966083, 1285966082, 978-0495553267

More Books

Students also viewed these Mathematics questions