An issue of BARRON’S presented information on top wealth managers in the United States, based on individual clients with accounts of $1 million or more. Data were given for various variables, two of which were number of private client managers and private client assets.
a) Obtain a scatterplot for the data.
b) Decide whether finding a regression line for the data is reasonable. If so, then also do parts (c)–(f).
c) Determine and interpret the regression equation for the data.
d) Identify potential outliers and influential observations.
e) In case a potential outlier is present, remove it and discuss the effect.
f) In case a potential influential observation is present, remove it and discuss the effect.