Chapter 5.3, Problem 52E

Both r² and s_e are used to assess the fit of a line.

1. a. Is it possible that both r² and s_e could be large for a bivariate data set? Explain. (A picture might be helpful.)
2. b. Is it possible that a bivariate data set could yield values of r² and s_e that are both small? Explain. (Again, a picture might be helpful.)
3. c. Explain why it is desirable to have r² large and s_e small if the relationship between two variables x and y is to be described using a straight line.