While Checking for Linearity by Examining the Residual Plot, the Residuals

question 21

Multiple Choice

While checking for linearity by examining the residual plot, the residuals must:

• A) exhibit a linear trend.
• B) form a parabolic shape.
• C) be randomly scattered.
• D) be below the x-axis.

---

Definitions:

Exclusive Use

A clause in a lease or agreement granting one party the sole right to use a property, asset, or service in a specified way.

Rent Escalation Clause

In a lease, a clause that permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant’s commercial business.

Long-Term Leases

Lease agreements that extend for a long period, often exceeding a year, typically used for real estate and heavy equipment.

Tenantable

Fit to be lived in or leased; a standard that rental property must meet in terms of safety and habitability under the law.