SUPPLEMENTARY EXERCISES for ... - WH Freeman

Section 4 15Table S4 Price and consumption of beef, 1970–1993Price per pound Consumption Price per pound ConsumptionYear (1993 dollars) (lbs. per capita) Year (1993 dollars) (lbs. per capita)1970 3.721 84.62 1982 3.570 77.031971 3.789 83.93 1983 3.396 78.641972 4.031 85.27 1984 3.274 78.411973 4.543 80.51 1985 3.069 79.191974 4.212 85.58 1986 2.989 78.831975 4.106 88.15 1987 3.032 73.841976 3.698 94.36 1988 3.057 72.651977 3.477 91.76 1989 3.096 69.341978 3.960 87.29 1990 3.107 67.781979 4.423 78.10 1991 3.059 66.791980 4.098 76.56 1992 2.931 66.481981 3.731 77.26 1993 2.934 65.06(c) Although it appears that price helps explain consumption, the scatterplot seems to show somenonlinear patterns. Find the residuals from your regression in (b) and plot them against time.Connect the successive points by line segments to help see the pattern. Are there systematiceffects of time remaining after we regress consumption on price? (A partial explanation is thatbeef production responds to price changes only after some time lag.)S2.16 The price of seafood varies with species and time. The following table gives the prices incents per pound received in 1970 and 1980 by fishermen and vessel owners for several species.Species 1970 price 1980 priceCod 13.1 27.3Flounder 15.3 42.4Haddock 25.8 38.7Menhaden 1.8 4.5Ocean perch 4.9 23.0Salmon, chinook 55.4 166.3Salmon, coho 39.3 109.7Tuna, albacore 26.7 80.1Clams, soft 47.5 150.7Clams, blue, hard 6.6 20.3Lobsters, American 94.7 189.7Oysters, eastern 61.1 131.3Sea scallops 135.6 404.2Shrimp 47.6 149.0(a) Plot the data with the 1970 price on the x axis and the 1980 price on the y axis.(b) Describe the overall pattern. Are there any outliers? If so, circle them on your graph. Dothese unusual points have large residuals from a fitted line? Are they influential in the sense