In a Multiple Regression Model, If the Residuals Have a Constant

question 126

Multiple Choice

In a multiple regression model, if the residuals have a constant variance, which of the following should be evident?

• A) The residual mean should be close to 0, and the residual standard deviation should be close to 1.0.
• B) The plot of residuals against each independent variable should show that the spread in the residuals is about the same at all levels of the independent variables.
• C) The residuals should have a variance equal to 0 for all levels of the independent variable.

---

Definitions:

Goal Congruence

Occurs when the objectives of different stakeholders or departments within an organization align and support each other.

Participative Budgeting

A budgeting process where those who are impacted by a budget are involved in the development of the budget, promoting engagement and accountability.

Budgetary Achievement

The extent to which the budgeted targets or goals have been met or achieved during a specific period.

Direct Material

Raw materials that are directly incorporated into the final product in the manufacturing process.