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Unformatted text preview: 6. We check by getting the histogram of the residuals. The histogram is unimodal, so the assumption does hold 7. The first 3 assumptions don't hold so the answers in project 8 are not valid 8. There are no outliers. The leverage point is 4/18 = .2222. The leverage point exists in the thirteenth year when S&P experienced a 23% decline. 9. The leverage points represent the year in which the percent of return of S & P is extreme. (An extremely good or bad performance) 10. When the leverage point is removed from the data, the new regression analysis shows a change in the regression line...
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This note was uploaded on 02/23/2010 for the course BUAD 310 at USC.