Modeling Relationships of Multiple Variables with Linear Regression



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Chapter 7 • Modeling Relationships of Multiple Variables with Linear Regression 177
Figure 7.9 Data Points, a Regression Line and Residuals
(dashed lines)
Constant Variation
Sometimes the regression line is not well suited to the data, as in Figure 7.10, which shows a fan effect This regression line is much better at predicting low values of the dependent variable than it is at predicting high values. It is therefore not an appropriate model, regardless of the strength of the coefficients or their significance values. Ina well-fitting regression model, the variation around the line is constant all along the line (Figure 7.5 is a good example.

30 20 10 0
120 100 80 60 40 20 0
Figure 7.10 Scatter Plot of a Fan Effect



Chapter 7 • Modeling Relationships of Multiple Variables with Linear Regression 178

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