06-Assessing Conditions

SDS 291

Prof. Baumer

September 24, 2025

Independence πŸ˜„

  • Depends on how the data were collected

When does independence usually hold?

  • Data collected by a random sample

Independence πŸ˜„

Common violations of independence

  • Time series/longitudinal data: same observational units are measured repeatedly over time
    • Ex: tracking stock market returns over time
  • Clustered data: observational units are physically grouped (e.g., by geography, by family relationship) into β€œclusters” that tend to be more alike
    • Ex: collecting information on birth weight from sets of siblings

Linearity: πŸ˜„

Random scatter above and below the reference \(y = 0\) line

Linearity: πŸ™Žβ€β™€οΈ

Patterns (of the residuals being consistently above or below the \(y = 0\) line)

Equal variance πŸ˜„

Discrepancies in the horizontal spread of the residuals are fine, but the vertical spread of the residuals should be consistent throughout

Equal variance: πŸ™β€β™‚οΈ

Funnel shapes

Example 1

Example 2

Example 3

Checking Normality

  • By visualizing the distribution of \(e_i\) using a histogram
    • Want to see a symmetric, bell-shaped pattern
    • Can be hard to tell visually when something is meaningfully different from a bell curve
  • By comparing the shape and spread of the residual distribution to that of a Normal distribution using a Normal-Quantile plot, also called a quantile-quantile (QQ) plot
    • More sensitive option

Normality: πŸ˜„

The sample quantiles (on the \(y\)-axis) and the theoretical quantiles from a Normal distribution (on the \(x\)-axis) should fall along the reference line

Normality: 😦

Right-Skewed Residuals

Left-Skewed Residuals

Many Extreme Residuals