Consider the Following to Answer the Question(s) Below

question 4

Multiple Choice

Consider the following to answer the question(s) below:
A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many kilograms of each variety of coffee were sold last month. The data, scatterplot and summary statistics are shown below.

-Below is a plot showing residuals versus fitted values for the estimated regression equation relating monthly sales of coffee to price per kilogram. Based on this plot we can say

• A) The linearity condition is not satisfied.
• B) The linearity condition is reasonably satisfied.
• C) A slight thickening of the plot is definitely not evident.
• D) The correlation coefficient is close to one.
• E) Nothing related to regression analysis can be said based on this graph.

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