A Residual Plot That Has No Pattern Is a Sign

question 2

Multiple Choice

A residual plot that has no pattern is a sign that…

• A)the original data is straight and the regression line is a good model.
• B)the original data is straight and the regression line is not a good model.
• C)the model is not a good one, because there is no pattern.
• D)the original data is curved and the regression line is not a good model.
• E)the original data is curved and the regression line is a good model.

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Definitions:

Wage Earners

Individuals who receive compensation for their labor or services in the form of wages or salary.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied is completely unresponsive to price changes.

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, and gasoline, often intended to discourage their use or generate revenue.

Consumers

People or collectives who buy products and services for their own consumption.