State the assumptions in fitting and making inferences with the model E(y) = + x.Which assumptions
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State the assumptions in fitting and making inferences with the model E(y) = α + βx.Which assumptions are most critical? In view of these assumptions, indicate why the model might not be adequate for
(a) x = income, y = charitable contributions within the previous year. (Hint: Would poor people show as much variation as wealthy people?)
(b) x = age, y = annual medical expenses.
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