The following is a set of residuals from a two-parameter


The following is a set of residuals from a two-parameter regression model:

0.97 -0.12 0.27 0.43 0.17 0.10 -0.58 0.96 0.04 0.54

-0.68 0.04 0.33 -0.04 -0.34 -0.85 0.12 0.14 0.49 -0.09

(i) Carry out a K-S test of normality and compare it with an A-D test of normal- ity. What are the associated p-values and what do these imply about the normality of these residuals?

(ii) It turns out that the residuals shown above had been "?ltered" by removing four observations that appeared to be outliers: {1.30, -1.75, 2.10, -1.55}. Reinstate these residuals and repeat (i). Does this change any of the conclusions about the normality of the residuals?

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Accounting Basics: The following is a set of residuals from a two-parameter
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