What Is a Clear Indicator of Non-Constant Variance in a Plot

question 1

Multiple Choice

What is a clear indicator of non-constant variance in a plot of regression model residuals?

• A) A non-linear trend in the residual plot.
• B) An intercept standard error larger that the estimated intercept coefficient.
• C) A funnel shaped trend in the residual plot.
• D) The standard errors from each independent variable differ.

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Definitions:

Service Industries

Sectors of the economy that provide intangible products or services such as healthcare, banking, and education.

Manufacturing Industries

Manufacturing industries involve the production of goods in large quantities using raw materials and machines, contributing significantly to economic development.

Collective Bargaining Agreements

Legal contracts between employers and a group of employees aimed at establishing wages, working conditions, benefits, and other aspects of workers' compensation and rights for a specified period.

Fringe Benefits

Additional benefits supplementing an employee's salary, such as health insurance, pensions, and paid vacations.