Residuals vs. fitted values

Here you can see diagnostic plots of residuals versus fitted values for two models on advertising conversion.

Original model (n_clicks versus n_impressions):

Transformed model (n_clicks ** 0.25 versus n_impressions ** 0.25):

Look at the numbers on the y-axis scales and how well the trend lines follow the \(y = 0\) line. Which statement is true?

This exercise is part of the course

Introduction to Regression with statsmodels in Python

Turn theory into action with one of our interactive exercises