Below Are Residual Plots for This Regression Model

question 4

Multiple Choice

Below are residual plots for this regression model. Based on these plots, which of the following statements is true?

• A) The scatterplot of the residuals against the predicted values shows patter.
• B) The scatterplot of residuals against the predicted values shows no possible outlier.
• C) The histogram is bell-shaped. The Nearly Normal condition is reasonably satisfied.
• D) The histogram indicates that the Independence assumption is violated.
• E) The normal probability plot shows no bend.

---

Definitions:

Cost of Overstocking

Expense incurred from holding too much inventory, including storage costs, decreased product value, and potential obsolescence.

Cost of Understocking

The financial and operational impact of not having enough inventory to meet demand, leading to lost sales and dissatisfied customers.

Product Availability

The extent to which goods or services can be purchased from suppliers by consumers at any given time.

Order Cycles

The complete sequence of processes from when an order is placed until it is received by the customer.