Refer to the CDI data set in Appendix C.2. For each of the three fitted regression models, obtain the residuals and prepare a residual plot against X and a normal probability plot. Summarize your conclusions. Is linear regression model (2.1) more appropriate in one case than in the others?
The city tax assessor was interested in predicting residential home sales prices in a midwestern
city as a function of various characteristics of the home and surrounding property. Data on 522 arms-length transactions were obtained for home sales during the year 2002. Each line of the data set has an identification number and provides information on 12 other variables. The 13 variables are: