Does it appear that the variability of y increases with x in the data plot of Exercise 11....

Does it appear that the variability of y increases with x in the data plot of Exercise 11.9? (This would violate the assumption of constant variance.)

Exercise 11.9

As one part of a study of commercial bank branches, data are obtained on the number of independent businesses (x) located in sample zip code areas and the number of bank branches (y) located m these areas. The commercial centers of cities are excluded.

Output (StataQuest) for the analysis of the data is as follows:

a. Plot the data. Does a linear equation relating y to x appear plausible?

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b. Locate the regression equation (with y as the dependent variable).

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c. Interpret the value of  in the context of this problem.

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d. Locate the sample residual standard deviations Sε.