Exhibit 15-8 The Following Estimated Regression Model Was Developed Relating Yearly Income

question 55

Multiple Choice

Exhibit 15-8
The following estimated regression model was developed relating yearly income (y in $1,000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) . = 30 + 0.7x₁ + 3x₂
Also provided are SST = 1,200 and SSE = 384.
-In a residual plot that does not suggest we should challenge the assumptions of our regression model, we would expect to see

• A)a horizontal band of points centered near zero
• B)a widening band of points
• C)a band of points having a slope consistent with that of the regression equation
• D)a parabolic band of points

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