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The Null Hypothesis - H0: The random errors will be normally distributed
The Alternative Hypothesis - H1: The random errors are not normally distributed
Reject H0: when P-value ≤ α = 0.05
As the P value is 0.043 it is less than the 0.05 significance level therefore reject H0 and accept H1 as there is sufficient evidence to show that random errors are not normally distributed. The assumption of normality is possibly satisfied as the normal probability plot is close to the straight line.
The 4 assumptions of regression: 1. Variables are normally distributed 2. Linear relationship between the independent and dependent variables 3. Homosced
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the two regrassion line will pass through the point (x,y)
applications of normal probability distribution
A new weight-watching company, Weight Reducers International, advertises that those who join will lose, on the average, 10 pounds the first two weeks with a standard deviation of 2
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