Problem 2: (Revised 6.3) Magazine Advertising: In a study ofrevenue from advertising, data were collected for 41 magazines listas follows. The variables observed are number of pages ofadvertising and advertising revenue. The names of the magazines arelisted as:
Here is the code help you to paste data into your R:
data6<-'Adv Revenue
25 50
15 49.7
20 34
17 30.7
23 27
17 26.3
14 24.6
22 16.9
12 16.7
15 14.6
8 13.8
7 13.2
9 13.1
12 10.6
1 8.8
6 8.7
12 8.5
9 8.3
7 8.2
9 8.2
7 7.3
1 7
77 6.6
13 6.2
5 5.8
7 5.1
13 4.1
4 3.9
6 3.9
3 3.5
6 3.3
4 3
3 2.5
3 2.3
5 2.3
4 1.8
4 1.5
3 1.3
3 1.3
4 1
2 0.3
'
data6n<-read.table(textConnection(object=data6),
header=TRUE,
sep=\"\",
stringsAsFactors = FALSE)
a. You should not be surprised by the presence of a large numberof outliers because the magazines are highly heterogeneous and itis unrealistic to expect a single relationship to connect all ofthem. Find outliers and high leverage points. Delete the outliersand obtain an acceptable regression equation that relatesadvertising revenue to advertising pages.
b. For the deleted data, check the homogeneity of the variance.Choose an appropriate transformation of the data and fit the modelto the transformed data. Evaluate the fit.
