According to the Residual Plot for a Linear Regression Model

question 196

Multiple Choice

According to the residual plot for a linear regression model shown to the right, the linear model ________________________ .

• A)okay because the same number of points is above the line as below it
• B)okay because the association between the two variables is fairly strong
• C)no good because the correlation is near 0
• D)no good because some residuals are large
• E)no good because of the curve in the residuals

---

Definitions:

Pull Processes

A production strategy where products are only made in response to demand, minimizing inventory levels and reducing waste.

Customer Demand

The desire and willingness of consumers to purchase goods or services at a given price.

Available Capacity

The maximum amount of work or output that a system can produce or handle in a given period without additional resources.

Strategic And Planning Decisions

Decisions involved in setting long-term objectives and outlining the necessary actions to achieve them.