Visualizing Regression Plots

Scatter plot smoothing

Scatter plot smoothing is a statistical technique used to gain an understanding of the general patterns in the data by creating a curve with a smoothed estimate of the relationship between two variables, x and y. It is also particularly useful for assessing bivariate outliers and influential observations that may affect the relationship between the variables.

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This is a macroeconomic datasetJ. W. Longley (1967) An appraisal of least-squares programs from the point of view of the user. Journal of the American Statistical Association 62, 819–841. recording economic variables of:

• GNP.deflator: GNP implicit price deflator (1954=100)

• GNP: Gross National Product

• Unemployed: Number of unemployed

• Armed.Forces: Number of people in the armed forces

• Population: ‘noninstitutionalized’ population ≥ 14 years of age

• Year: The year (time)

• Employed: Number of people employed

Note: This dataset is often used to demonstrate how regressing Employed on the remaining variables causes multicollinearity.