The Following Is a Scatterplot of a Company's Profits Versus

question 17

Multiple Choice

The following is a scatterplot of a company's profits versus their sales (in dollars) . Each point on the plot represents profits and sales during one of the months in the sample. Which of the following statements is supported by the plot?

• A)There is no striking evidence that the assumptions for regression are violated and there is a clear, straight-line trend.
• B)There are very influential observations suggesting that the least-squares regression line must be interpreted with extreme caution.
• C)The plot contains dramatic evidence that the standard deviation of the response about the true regression line is not even approximately the same everywhere.
• D)The plot contains many fewer points than are needed to fit the least-squares regression line; obviously there is a major error present.

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