Use the Following to Answer the Question(s) Below

question 30

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 of the following statement is true?

• A) The normal probability plot shows no bend and indicates that Independence assumption is satisfied.
• B) The residual plot has no pattern and indicates that Independence assumption is satisfied.
• C) The histogram is relatively bell-shaped and indicates that Independence assumption is satisfied.
• D) The t-test for the regression slope indicates that Independence assumption is satisfied.
• E) The histogram and plots show that not all assumptions and conditions for regression inference are met. It looks like data are highly correlated over time. So, we should test the model for autocorrelation.

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Definitions:

Midlife

A period of life, usually considered to occur approximately between the ages of 40 and 60, characterized by various physical, psychological, and social changes.

Vaillant

Refers to George E. Vaillant, a psychiatrist known for his research on how people adapt to stress and other psychological processes across the lifespan.

Agentic

Pertains to an individual's sense of agency, or the ability to act independently and make free choices, shaping one's own life path.

Democratic

Pertaining to a form of government in which power is vested in the people, who rule either directly or through freely elected representatives.