Use the Following to Answer the Question(s) Below

question 7

Multiple Choice

Use the following to answer the question(s) below.
A linear regression model was fit to data representing technology adoption over time. The regression output and residual plot appears below.
-Based on the output and plot, which of the following statements is not true?

• A) According to the regression output, the model explains 82.5% of the variability in Technology Adoption. However, the residual plot shows a pattern and curvature.
• B) The scatter plot of the residuals against the predicted values shows a pattern. A regression model applied to the data is questionable.
• C) The t-test for the regression slope indicates that it is significantly different from zero, but the residual scatter plot shows that Equal Variance assumption is violated.
• D) The regression model is applied to the time series data. The residual plot suggests that the Independence assumption might be violated. We have to use Durbin-Watson statistic to detect autocorrelation.
• E) The plot shows that all assumptions and conditions for regression inference are met. R2 and P-value report that there is strong correlation between Technology Adoption and Time.

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