Evaluate the regression assumptions of linearity

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Often, when dealing with dependent variables that represent financial data (income, price, etc.), using the natural log of the dependent variable will help to alleviate problems that may be causing patterns in residuals/violations of the required conditions. Re-run the Multiple Regression analysis using the natural log of the page cost variable instead. Re-run the Regression using this new variable as the dependent variable against all 3 independent variables, again creating residual plot for this model.

Evaluate the regression assumptions of linearity and homoscedasticity by assessing your new residual plot. Be specific about your evaluation and describe any suggestions you have for remedying any problems. [Hint: for suggestions you may read question 4 below.]

Reference no: EM13137464

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