The Residual Plot Below Indicates That One or More of Assumptions

question 21

Multiple Choice

The residual plot below indicates that one or more of assumptions of the linear regression model may not be met. Which of the following is a reasonable conclusion based on this residual plot? ​

• A)The residual plot clearly indicates a non-linear model would be more appropriate.
• B)There is evidence that the residuals are not normally distributed.
• C)The slope of the regression line is non-zero.
• D)The correlation between x and y is non-zero.
• E)There is evidence the residuals do not have the same variance for all x values.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a specific input, keeping other inputs constant.

Level of Employment

The total number of people currently employed in the economy, either full-time or part-time.

Pizza Producing Technology

The methods and equipment used in the production of pizzas, often incorporating advancements for efficiency and quality.

Marginal Product

The additional output that is generated by employing one more unit of input, such as labor or capital, in the production process.