For 3B you will want 6 graphs. The first 3 will have the square root
of the absolute value of the residuals from the regression with
interlocks as the dependent variable on the y axes and assets,
sqrt(assets), and the fitted values of interlocks from the regression
of interlocks on the X axes. The second 3 will have the square root of
the absolute value of the residuals from the regression with
sqrt(interlocks +1) as the dependent variable on the y axes and
assets, sqrt(assets), and the fitted values of sqrt(interlocks + 1)
from the regression of sqrt(interlocks + 1) on the X axes.
Hope this helps.
Best,
Kevin
Are we only supposed to have two graphs for 3B? This
is the way I
read it, but I want to make sure. This is what I have: