If the Plot of the Residuals Is Fan Shaped,which Assumption

question 108

Multiple Choice

If the plot of the residuals is fan shaped,which assumption is violated?

• A)Normality.
• B)Homoscedasticity.
• C)Independence of errors.
• D)No assumptions are violated,the graph should resemble a fan.

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically categorized as fixed or variable costs.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net income or loss.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of the shareholders or owner.

Revenues

The total income generated from the sale of goods or services related to a company’s primary operations.