Application and Reasoning Problems

8.4. The file C08 Hospitals.xls [.rda] contains hospital and physician data on a number of metropolitan areas. Use this data to develop a regression model for predicting the number of general hospitals that a metropolitan region can support based on the number of general physicians in the region. Once you have the model, use the residuals and the summary measures to identify the regions which are outliers (for these purposes, an outlier is more than four standard errors away from the fitted values). You should find a total of seven outliers in the data (including both too high and too low).