83 Check Assumptions and Conditions for the Multiple Regression Model

question 12

Multiple Choice

8.3. Check assumptions and conditions for the multiple regression model.
-What affects flat panel LCD TV sales? Flat panel LCD TV's are sold through a
Variety of outlets. Sales figures (number of units) for the popular Sony Bravia were
Obtained for last quarter from a sample of 30 different stores. Also collected were data
On the selling price and amount spent on advertising the Sony Bravia (as a percentage of
Total advertising expenditure in the previous quarter) at each store. A multiple regression
Model was fit to the data and the plot of residuals versus predicted values is shown
Below. What does the residual plot suggest?

• A) The Linearity condition is not satisfied.
• B) There is an extreme departure from normality.
• C) The variance is not constant.
• D) The presence of a couple of outliers.
• E) The plot thickens from left to right.

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Definitions:

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

Career Change

The process of switching from one profession or occupation to another, often involving retraining and the development of new skills.

Mental Health

refers to the state of someone’s emotional, psychological, and social well-being, affecting how they think, feel, and act.

Identity Certainty

A state of clear, secure understanding, and confidence in one's own sense of self, values, and beliefs.