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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):

scatter-residuals-vs-fitted-ad-conversion-orig.png

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

scatter-residuals-vs-fitted-ad-conversion-trans.png

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

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Introduction to Regression with statsmodels in Python

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