Which of the Following Inferences Can Be Drawn from the Scatter

question 58

Multiple Choice

Which of the following inferences can be drawn from the scatter chart given below?

• A) The residuals have a varying variance.
• B) The model captures the relationship between the variables accurately.
• C) The regression model follows the F probability distribution.
• D) The residual distribution is consistently scattered about zero.

---

Definitions:

20-year Annuity

A financial product that provides a stream of payments to the holder for a period of 20 years.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth or interest.

Ordinary General Annuity

An annuity in which the payment interval does not equal the compounding interval, and payments are made at the end of each payment interval.

Semi-annual Payments

Payments made twice a year, often in the context of loans, investments, or insurance premiums.