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A public health researcher wants to use regression to predict the sun safety knowledge of pre-school children. The researcher randomly sampled 35 preschoolers, assigned them to one of two groups, and then measured the following three variables:
SUNSCORE: Score on sun-safety comprehension test
READING: Reading comprehension score
GROUP: if child received a Be Sun Safe demonstration, 0 if not
A regression model was fit and the following residual plot was observed.
Predicted value of
Which of the following assumptions appears violated based on this plot?
Unbiased Forward Rates
Interest rates or currency exchange rates that are equal to the expected future spot rates, implying no arbitrage opportunities.
Exchange Rate
The exchange rate reflecting the value of one currency compared to another.
Spot Exchange Rate
This is the current exchange rate at which two currencies can be exchanged immediately.
Eurocurrency
Currency deposited by national governments or corporations in banks outside their home market, primarily used for lending, borrowing, and investing internationally.
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