Find the correlation between the residuals and fitted, Financial Management

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Find the correlation between the residuals and fitted

Suppose that you generate a scatterplot of residuals versus fitted values of the dependent variable for an estimated regression equation.

Furthermore, you find the correlation between the residuals and fitted values to be 0.829.

Does this provide a good indication that the estimated regression equation is satisfactory? Explain why or why not.

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Financial Management: Find the correlation between the residuals and fitted

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Financial Management: Find the correlation between the residuals and fitted

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