A Residuals Plot Is Useful Because

question 87

Multiple Choice

A residuals plot is useful because
I. it will help us to see whether our model is appropriate.
II. it might show a pattern in the data that was hard to see in the original scatterplot.
III. it will clearly identify influential points.

• A) I and II only
• B) I only
• C) I, II, and III
• D) I and III only
• E) II only

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Definitions:

Income Quintiles

A statistical measure dividing a population into five equal groups according to their income level for comparative analysis.

Government Spending

Expenditures by the government sector on goods and services that it consumes to provide public services and for the benefit of the community.

Personal Income Tax

Tax levied on individuals or households based on their total income from all sources.

Corporate Income Tax

A tax imposed on the net income or profit of corporations and other business entities by the government.