Residual Analysis
Residuals vs Fitted Values
The plot of residuals vs fitted values shows that the residuals are randomly scattered around the horizontal line at zero, indicating that the linearity assumption is reasonable. However, there might be some heteroscedasticity as the spread of residuals seems to increase with fitted values.
Normal Probability Plot of Residuals
The normal probability plot shows that the residuals approximately follow a straight line, indicating that the residuals are approximately normally distributed.
Residuals vs Gr Liv Area
The plot of residuals vs Gr Liv Area shows that the residuals are randomly scattered around the horizontal line at zero, indicating that the linearity assumption is reasonable. However, there might be some heteroscedasticity as the spread of residuals seems to increase with Gr Liv Area.
Leverage vs Residuals
The plot of leverage vs residuals shows that most observations have low leverage values, indicating that there are no significant leverage points.
Cook's Distance
The plot of Cook's distance shows that most observations have low Cook's distance values, indicating that there are no significant influential points.
Next, we will calculate the training and test Mean Squared Errors (MSEs).