Data on sales have been collected from a chain of convenience stores. Some of the stores are considerably larger (more square feet of display space) than others. In a regression of sales on square feet, can you anticipate any problems?
As part of locating a new factory, a company investigated the education and income of the local population. To keep costs low, the size of the survey of prospective employees was proportional to the size of the community. What possible problems for the SRM would you expect to find in a scatterplot of average income versus average education for communities of varying size?
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