- You are working as a data scientist for a fintech company. At the moment, you are working on a regression model that predicts how much money customers will spend on their credit card transactions in the next month. You believe you have created a good model; however, you want to complete your residual analysis to confirm that the model errors are randomly distributed around zero. What is the best chart for performing this residual analysis?
a) Line chart
b) Bubble chart
c) Scatter plot
d) Stacked bar chart
C, In this case, you want to show the distribution of the model errors. A scatter plot would be a nice approach to present such an analysis. Having model errors randomly distributed across zero is just more evidence that the model is not suffering from overfitting. Histograms are also nice for performing error analysis.
- Although you believe that two particular variables are highly correlated, you think this is not a linear correlation. Knowing the type of correlation...