Based on the Following Residual Plot, Which Condition / Assumption

question 16

Multiple Choice

Based on the following residual plot, which condition / assumption for linear regression is not satisfied?

• A) Linearity.
• B) Quantitative Variables.
• C) Equal Spread.
• D) Outlier.
• E) None of the above; all conditions are satisfied.

---

Definitions:

Mortgagees

Banks or other financial institutions that lend money to borrowers (mortgagors) for the purchase of property, holding a lien on the property as security for the repayment of the loan.

Security Interest

A security interest is a legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.

Financing Statement

A document filed to indicate a security interest in personal property, used to publicize a creditor's right to possible repossession of goods.

Perfection

In legal finance, it refers to the process of securing a lien or interest in a borrower's collateral, making it legally enforceable against third parties.