6 Refer to the previous problem. Figure 13.14 shows a SAS scatter diagram for the rela- tionship...

Question:

6 Refer to the previous problem. Figure 13.14 shows a SAS scatter diagram for the rela- tionship between selling price and size of home. identifying the points by a 1 when the home is new and a 0 when it is not. Because of the crudeness of scale, many of the points are hidden in this plot, but note that the observation with the highest selling price is a new home that is somewhat removed fioin the general tread of points Table 13.17 shows a SAS printout for the interaction inodel after removing this single observation. For tlus adjusted data set. R2 = .845 for the no interaction model and R2 = .848 for the interac- tion model. Now, again answer the four parts of the previous exercise, and note what a large impact one observation can have on the conclusions.

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: