Use the Following to Answer the Question(s) Below

question 37

Multiple Choice

Use the following to answer the question(s) below.
Weekly commodity prices for heating oil (in cents) were obtained and regressed against time. Below is the regression output and residual plots from fitting a linear model.
-Which assumption appears to be violated?

• A) Linearity
• B) Normality
• C) Equal Variance
• D) Linearity and Normality
• E) Linearity, Normality and Equal Variance assumptions are violated.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other security, typically set at the time of issuance and used to calculate dividends or interest.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.