Data on labor productivity and unit labor costs were obtained for the retail industry from 1987 through 2006 (Bureau of Labor Statistics). A regression was estimated to describe the linear relationship between the two variables. Based on the plot of residuals versus predicted values, is the linear model appropriate? Explain.

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The Answer of Data on labor productivity and unit labor costs were obtained for the retail industry from 1987 through 2006 (Bureau of Labor Statistics). A regression was estimated to describe the linear relationship between the two variables. Based on the plot of residuals versus predicted values, is the linear model appropriate? Explain.

Data on Labor Productivity and Unit Labor Costs Were Obtained