The article Air Pollution and Medical Care Use by Older Americans(Health Affairs [ 2002]: 207 214) gave
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The equation of the least squares regression line for this data set is ˆ = 1082.2 2 4.691x, where y = medical cost and x = pollution.
a. Compute the six residuals.
b. What is the value of the correlation coefficient for this data set? Does this value indicate that the linear relationship between pollution and medical cost is strong, moderate, or weak? Explain.
c. Construct a residual plot. Are there any unusual features of the residual plot?
d. The observation for the West, (40.0, 899), is far removed from the other values in the sample. Is this observation influential in determining the values of the slope and/ or intercept of the least squares line? Justify your answer.
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