Assignment6

1.

df <- read.csv("D:/ChromeDownload/week 6 data-1.csv")

cor <- cor(df$Expenditures, df$RVUs)

2.

model1 <- lm(Expenditures ~ RVUs, data = df)

plot(model1)

summary(model1)

## 
## Call:
## lm(formula = Expenditures ~ RVUs, data = df)
## 
## Residuals:
##        Min         1Q     Median         3Q        Max 
## -185723026  -14097620    2813431   11919781  642218316 
## 
## Coefficients:
##               Estimate Std. Error t value Pr(>|t|)    
## (Intercept) -3.785e+06  4.413e+06  -0.858    0.392    
## RVUs         2.351e+02  5.061e+00  46.449   <2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 67350000 on 382 degrees of freedom
## Multiple R-squared:  0.8496, Adjusted R-squared:  0.8492 
## F-statistic:  2157 on 1 and 382 DF,  p-value: < 2.2e-16

The assumptio holds because:

1.