In our statistical analysis example, we want to build a simple regression model that we can use to predict project profitability (profit) by establishing a statistically significant linear relationship with hours billed (to a client) (hours billed). Therefore, we can begin our graphical analysis by plotting this data in various ways.
Typically, for each of the independent variables (predictors), the following plots should be drawn to visualize the following behavior:
- Scatter plot: This is drawn to visualize the linear relationship between the predictor and the response.
- Box plot: This is drawn to spot any outlier observations in the variable. Having outliers in a predictor can drastically affect the predictions as ...
