Based on the Residual Plot Below,you Will Conclude That There

question 12

Multiple Choice

Based on the residual plot below,you will conclude that there might be a violation of which of the following assumptions.

• A)Linearity of the relationship
• B)Normality of errors
• C)Homoscedasticity
• D)Independence of errors

---

Definitions:

Changes

Variations, adjustments, or transformations in conditions, situations, or states over time.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied responds infinitely to changes in price.

Down-sloping

A characteristic of certain economic graphs, like demand curves, which indicates that as the price of an item goes down, demand for it increases.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels, holding all other factors constant.