I am not sure what to do with this regression residuals.
The Normal Q-Q plot is indicating that residuals are non-normal (not too extreme) and residual variance is not constant (not too bad). My input variables are factor variables so I am not able to normalize it.
What do you guys think about this plot? Should I continue with this plot and say that assumptions are not violated and continue?
In fact, I think assumptions are violated slightly but not extremely. What should I do if I think assumptions are violated?